Collapsed cryptocurrency exchange FTX has seemingly secured $500 million to help refund creditors, after selling assets it had invested in.

The founder of Terraform Labs, Do Kwon, has reportedly been arrested in Montenegro, and is now facing fraud charges by US prosecutors in New York.

The decentralized autonomous organization (DAO) behind the popular cryptocurrency-backed stablecoin DAI, MakerDAO, has voted to maintain USDC as its primary reserve asset, even after the cryptocurrency lost its peg amid the US banking crisis.

 Top stories in the Crypto Roundup today:

• FTX Gets $500 Million for Refunds
• Terra founder Do Kwon Faces Fraud Charges After Being Arrested
• DAI Issuer MakerDAO Votes to Maintain USDC as Primary Reserve
• Crypto Market Movers – LQTY, STX, MASK

FTX Gets $500 Million for Refunds

Collapsed cryptocurrency exchange FTX has seemingly secured $500 million to help refund creditors, after selling assets that it had invested in.

The assets included about $404 million transferred to investment fund Modulo Capital, and $95 million from the sale of its stake in Mysten Labs. Modulo Capital, managed by Xiaoyun “Lily” Zhang and Duncan Rheingans-Yoo, received $475 million last year ahead of FTX’s collapse.

According to court records, the proposed settlement would prevent an expensive lawsuit between Modulo and FTX over cash. FTX has stated that the settlement is valued at $460 million, as it includes $404 million in cash and requires Zhang and Rheingans-Yoo to withdraw their claims against the company for $56 million.

The agreement is still to be approved by US bankruptcy judge John Dorsey. Meanwhile, FTX debtors have approved an agreement to sell the firm’s preferred stock in the company behind the Sui blockchain, Mysten Labs.

Under the agreement, the debtors plan to sell about $95 million worth of preferred stock back to Mysten and also acquire $1 million worth of SUI tokens. The deal is subject to court approval as well as the possibility of other bids on the stock before being finalized.

Terra founder Do Kwon Faces Fraud Charges After Being Arrested

The founder of Terraform Labs, Do Kwon, hasreportedly been arrested in Montenegro, and is now facing fraud charges by US prosecutors in New York.

In a court filing signed by United States Attorney Damian Williams, Kwon is charged with eight separate counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.

The first charge, which is conspiracy to defraud, is based on Kwon's alleged false and misleading statements made during a TV interview about the adoption of the Terra blockchain by users.

The prosecutors claim to have jurisdiction over Kwon as the interview was transmitted to various places, including the Southern District of New York. Four charges pertain to Kwon's supposed involvement in trading strategies aimed at manipulating the market price of UST, which has since rebranded to the TerraClassicUSD stablecoin (USTC) and his purportedly misleading statements about the efficacy of USTC in maintaining its peg with the US dollar.

According to Montenegro-based news outlet Pobjeda, the state’s Prosecution Office may soon press charges against Kwon and Joon for using forged travel documents from Costa Rica, which were first discovered by Interpol.

DAI Issuer MakerDAO Votes to Maintain USDC as Primary Reserve

The decentralized autonomous organization (DAO) behind the popular cryptocurrency-backed stablecoin DAI, MakerDAO, has voted to maintain USDC as its primary reserve asset, even after the cryptocurrency lost its peg amid the US banking crisis.

According to the protocol’s governance site, some 79% of community members participating in governance backed keeping USDC over diversifying the protocol’s reserves. Maker issues $5.3 billion in DAI, backed by digital assets from borrowers and real-world assets including US Treasurys.

Circle’s USDC, a stablecoin with 35 billion tokens in circulation, is backed by cash and short-term US government bonds. The stablecoin represents $3 billion worth of the reserve assets in the Peg Stability Module (PSM) of DAI.

The decision to maintain USDC as the primary reserve asset reverses emergency measures taken during the stablecoin crisis that saw USDC lose its peg.

Crypto Market Movers – LQTY, STX, MASK

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Stacks (STX) - Stacks is an open-source network of decentralized apps and smart contracts built on Bitcoin. The Stacks blockchain is a flexible layer on top of Bitcoin that enables decentralized apps, smart contracts, and digital assets.

Liquity (LQTY) - Liquity is a decentralized borrowing protocol that allows users to obtain loans against Ether tokens used as collateral, with the interest rate determined by the borrower. In essence, Liquity provides loans to individuals in exchange for Ether tokens present with them.

Mask Network (MASK) - Mask Network is a gateway to access Web 3.0 or decentralized web. It enables users of popular social media platforms to send crypto and share encrypted content within decentralized applications.

State of the Crypto by Top Tier Exchange Volume

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