thenewscrypto.com
- Do Kwon and his firm were found guilty by a jury in April of misleading investors.
- This is a second high-profile case in the crypto industry to pay a settlement of more than $4B.
Terraform Labs has reached a $4.47 billion settlement with the U.S SEC, ending the allegations brought against it. Reuters was the first to report the settlement, which will make it the second high-profile case in the cryptocurrency industry to pay a settlement of more than $4 billion.
As part of its deal with the SEC, Terraform Labs will pay $420 million in civil penalties and $3.58 billion in disgorgement. Following this, on June 12, the parties were required to submit their filings with the court presided over by Judge Jed Rakoff of the United States District Court for the Southern District of New York, and they did so.
Highly Anticipated Settlement
Do Kwon and his firm were found guilty by a jury in April of misleading investors about their crypto products; thus, they decided to settle. The legal disaster that began two years ago may finally end with the filing of the settlement terms today.
Binance Exchange reached a settlement with the DOJ a few months ago, ending a protracted investigation into the exchange. In a settlement of $4.3 billion, the trading platform paid the Department of Justice (DoJ), the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC). Founder Changpeng “CZ” Zhao, who is now doing time in prison, resigned during the settlement as well.
In 2022, when Terraform Labs’ co-founder Do Kwon was suspected of engaging in fraudulent activities, the company came under significant scrutiny from the government. Two of Terraform Labs’ tokens, Terra (LUNA) and TerraUSD (USTC), were liquidated within a few months of one another, which resulted in the loss of more than $40 billion from the market.
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