Terraform Will Pay $4.47B to Settle Case with SEC
Terraform Labs has agreed to settle with the US Securities and Exchange Commission for $4.47 billion in fines over its algorithmic stablecoin, which suffered a significant drop in 2022.
The SEC has filed a “proposed final consent judgment” and is seeking approval from the US District Court for the Southern District of New York.
The proposed settlement includes remedial and punitive measures to address the magnitude of the fraud, including a multi-billion dollar judgement against Terraform and its co-founder Do Kwon.
This settlement will also provide for a timely recovery of funds for the investors who collectively lost billions as a result of the fraudulent scheme.
This proposed judgement serves as a warning to those engaging in misconduct and those attempting to bypass federal securities laws for crypto assets.
