Breaking: Do Kwon’s Terraform Agrees to Pay $4.47 Billion Fine in SEC Case
In a landmark decision, Terraform Labs and its founder, Do Kwon, have agreed to pay the United States Securities and Exchange Commission (SEC) a $4.47 billion fine.
This agreement comes after months of legal battles and negotiations following the collapse of the Terra-Luna stablecoin ecosystem, which wiped out an estimated $40 billion from the crypto market.
Terraform Labs and Do Kwon were initially found liable for fraud related to the Terra-Luna crash, and despite their legal team’s efforts to reduce the fines to $1 million, the SEC maintained its stance on seeking billions in penalties. The settlement, announced today, includes a significant financial penalty but potentially averts a prolonged legal confrontation and additional sanctions.
Terraform Labs and its founder, Do Kwon, have agreed to a $4.47 billion fine in their case with the SEC, as revealed in a recent post on X. This agreement follows intense legal battles and a series of high-profile developments over the past months.
U.S. SECURITIES AND EXCHANGE COMMISSION: TERRAFORM AGREES TO PAY $4.47 BILLION IN SEC CASE – RTRS
— Tree News (@News_Of_Alpha) June 12, 2024
The settlement includes disgorgement fines of around $3.6 billion, a civil penalty of $420 million, and nearly $467 million in prejudgment interest. In addition, Do Kwon is liable for $110 million in disgorgement penalties and roughly $14.3 million in prejudgment interest fines according to the settlement plan.
The settlement filing also stipulates that all crypto assets belonging to the Luna Foundation Guard and all PYTH token holdings from Do Kwon will be transferred to cover the cost of the disgorgement fines and prejudgment interest. Any remaining amount from the sale of these assets will be
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