Landmark Settlement Reached between SEC, Terraform Labs, and Do Kwon

Wednesday, 12 June 2024, 18:10

In a significant development, Terraform Labs and its co-founder Do Kwon have agreed to pay a record $4.5 billion in a civil fraud case brought by the SEC. This settlement, subject to judicial approval, includes a prohibition on Kwon and Terraform Labs engaging in transactions involving crypto asset securities. The resolution underscores the growing regulatory scrutiny in the cryptocurrency industry and the potential impacts on market participants.

https://store.livarava.com/d5412883-28e8-11ef-ab75-0d95d4a28fb2.jpg — Landmark Settlement Reached between SEC, Terraform Labs, and Do Kwon

Terraform Labs and Do Kwon Settle SEC Civil Fraud Case

The Securities and Exchange Commission (SEC) announced a landmark settlement agreement with Terraform Labs and its co-founder Do Kwon.

Terms of the Settlement

$4.5 billion Payment: Terraform Labs and Kwon to pay a combined $4.5 billion in resolution of the civil fraud case.
Prohibition on Transactions: The settlement also includes a ban on Kwon and Terraform Labs from trading crypto asset securities.

This agreement remains subject to approval by a judge and highlights the increasing regulatory oversight in the cryptocurrency sector.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.