US Judge Approves $4.5bn Settlement: Terraform Labs Founder Faces Crypto Industry Exit
Summary:
A US district court judge has approved a $4.5 billion settlement between Terraform Labs, Do Kwon (its founder), and the Securities and Exchange Commission. Terra and Kwon are now to pay $4.47 billion in penalties and are effectively barred from the crypto sector. Currently detained in Montenegro after a jail term over illegal use of fake passports, Kwon is now awaiting the decision on extradition requests from the US and South Korea.
The $4.5 billion settlement between Terraform Labs, its founder Do Kwon, and the Securities and Exchange Commission (SEC) has obtained the approval of a US district court judge. The legal endorsement, which was given by District Judge Jed Rakoff of New York on June 13, means Terra and Kwon will have to pay $4.47 billion in fines and penalties. This essentially prohibits them from participating in the cryptocurrency sector. Terraform's financial obligations include approximately $3.6 billion in disgorgement fines, a civil penalty to the tune of $420 million, and close to $467 million as prejudgement interest. Kwon, who has completed a four-month prison sentence for illegally using fake passports to attempt to exit Montenegro in March the previous year, is currently detained there. Terraform Labs will cease operations while the Terra community takes charge. As the Montenegran courts ponder over extradition requests from both the US and Kwon's home country South Korea - both of which have criminal charges against him - he has been granted temporary release. Last month, Kwon's lawyers were able to appeal his extradition effectively, with Montenegro's High Court preparing to decide on his extradition location.
Published At
6/14/2024 1:34:32 AM
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