Terraform, Do Kwon Agree in Principle to Settle Fraud Case With SEC: Court Filing
Summary
Terraform Labs and its co-founder Do Kwon have reached a preliminary settlement with the U.S. Securities and Exchange Commission (SEC) over a fraud case. The SEC had proposed a $5.3 billion penalty, the largest ever for a cryptocurrency project. The settlement was announced during a telephone conference, and the parties are required to file supporting documents by June 12. Kwon, currently on bail in Montenegro, is awaiting extradition to the U.S. or South Korea and faces criminal charges in both countries. Kwon co-founded the Terra ecosystem, including the Terra and LUNA tokens, which collapsed in May 2022, causing widespread industry impact.
