Terraform Labs Settles with SEC for $4.47 Billion Amid Terra Ecosystem Collapse
Summary:
Terraform Labs has agreed to pay around $4.47 billion to the U.S. Securities and Exchange Commission (SEC), following a settlement over the collapse of Terra ecosystem, which wiped out $40 billion in investor assets. The co-founder Do Kwon will separately pay disgorgement and pre-judgement interest fines. Further details will be provided as the story unfolds.
In an arrangement with the U.S. Securities and Exchange Commission (SEC), Terraform Labs has consented to pay a sum of approximately $4.47 billion. This amount includes around $3.6 billion in disgorgement fines, a civil fine of $420 million, and approximately $467 million in pre-judgment interest. Do Kwon, in line with the settlement agreement, is responsible for paying $110 million in disgorgement fines and about $14.3 million befitting pre-judgment interest fines. This agreement came about after a jury held Terraform Labs and its co-founder accountable for the crash of Terra ecosystem, resulting in the disappearance of $40 billion of investor funds. According to the settlement document, "Kwon's payment obligation to the monetary remedies will be deemed fulfilled, given all transfers by Kwon to the SEC and the Terraform bankruptcy estate in the Bankruptcy Case total no less than $204,320,196, excluding the value of any Terraform Cryptocurrency Assets transferred to the Terraform's bankruptcy estate, only if and when Kwon accomplishes: (1) depositing $4,700,000 into an escrow account agreed upon by Kwon and Commission staff within 30 days of Final Judgment." As this news unfolds, more details will be provided as they surface.
Published At
6/12/2024 8:35:50 PM
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