SEC Settles With Former Stablecoin Juggernaut Terraform Labs for $4,470,000,000: Report

A new report says that the U.S. Securities and Exchange Commission (SEC) has reached a multi-billion dollar settlement with the crypto firm that played a major role in kicking off the FTX implosion.

According to Reuters, the SEC has reached a $4.47 billion settlement with Terraform Labs after the stablecoin firm was found liable for defrauding investors of $40 billion in the 2022 TerraUSD and Luna collapse.

According to the report, the proposed final judgment on the trial was filed on Wednesday but is still awaiting approval by U.S. District Judge Jed Rakoff. The $4.47 billion settlement includes $4.05 billion in disgorgement plus interest, in addition to a civil fine of $420 million, plus a fine of $80 million for the firm’s disgraced founder, Do Kwon.

Terraform filed for bankruptcy in January, according to the report.

In April, a Federal trial court jury found Kwon and Terraform Labs liable for the fraud charges brought by the SEC.

Said the SEC in a court filing about the settlement,

“Entry of this judgment would ensure the maximal return of funds to harmed investors and put Terraform out of business for good.

Thus, this proposed judgment is fair, reasonable, and in the public interest.”

Terraform Labs founder Do Kwon is currently waiting in Montenegro. Last month, he reportedly reached a preliminary settlement with the SEC.

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Featured Image: Shutterstock/Tithi Luadthong