Terraform Labs and founder Do Kwon pay $4.47B civil settlement to US SEC for defrauding investors through unregistered securities and TerraUSD/Luna collapse.
Terraform Labs, the company behind the Terra ecosystem and its founder, Do Kwon, have agreed to pay a record-breaking $4.47 billion civil settlement to the US Securities and Exchange Commission (SEC). The settlement resolves the SEC's lawsuit accusing Terraform Labs and Kwon of defrauding investors through the sale of unregistered securities and the collapse of TerraUSD and Luna tokens in 2022, which resulted in a $40 billion loss for crypto holders. Along with the payment, Terraform Labs and Do Kwon are prohibited from buying or selling cryptocurrency assets.
June 12, 2024
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