Official legal documents or announcements from US legal authorities

Terraform Labs and Do Kwon Settle SEC Fraud Case for $4.47 Billion

Jun 12, 2024, 07:04 PM

Terraform Labs has agreed to pay $4.47 billion to settle a civil fraud lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The lawsuit, which followed the firm's collapse in 2022 that wiped out $40 billion in investor assets, accused Terraform Labs and its co-founder Do Kwon of securities fraud. As part of the settlement, Do Kwon will pay an additional $204 million and will be banned from serving as an officer or director in a public company. The settlement, pending court approval, includes approximately $3.5 billion in disgorgement of ill-gotten gains and $460 million in penalties. The SEC's case highlighted the significant impact of Terraform's collapse on the cryptocurrency market.