US Judge Approves $4.5B Terraform Settlement With SEC
A settlement has been reached by a US District Court judge, with the approval of District Court Judge Jed Rakoff from the Southern District of New York (SDNY), between the Securities and Exchange Commission (SEC), Terraform Labs, and former CEO Do Kwon.
The settlement involves Terraform Labs and Kwon paying a total of $4.5 billion in penalties and being permanently banned from transactions involving all “crypto asset securities,” including Terra ecosystem tokens.
This agreement comes after a civil lawsuit against Terraform Labs and Kwon for fraud, which caused the $40 billion collapse of the Terra ecosystem in May 2022.
The collapse resulted in the downfall of other crypto companies such as Three Arrows Capital, Genesis Global Capital, and FTX.
