U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC
A U.S. District Court judge has approved a settlement between the Securities and Exchange Commission (SEC), Terraform Labs, and its former CEO, Do Kwon. The settlement requires Terraform Labs and Kwon to pay $4.5 billion in disgorgement and civil penalties, and permanently bans them from buying and selling "crypto asset securities," including Terra ecosystem tokens. It is not clear if this ban extends to other cryptocurrencies. The settlement amount is less than the SEC's initial offer of $5.3 billion but significantly more than Terraform's initial proposal of $1 million. Kwon is currently in custody in Montenegro awaiting an extradition decision. Terraform Labs is in Chapter 11 bankruptcy protection with approximately $150 million in assets.
