Terraform Labs Agrees to $4.47 Billion Settlement with SEC Following 2022 Collapse

Jun 12, 2024, 05:20 PM

Terraform Labs has agreed to pay $4.47 billion to resolve a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The settlement follows the firm's 2022 collapse, which resulted in a loss of $40 billion in investor assets and significantly impacted the cryptocurrency market. The proposed judgment includes approximately $3.5 billion in disgorgement and $460 million in penalties. The SEC's investigation highlighted Terraform's role in a major securities fraud case. The court approval for the final consent judgment is pending. The case also involves Terraform's former CEO, Do Kwon, and includes oversight from American and Canadian entities.