Terraform Labs Will Pay $4.5B to SEC to Settle Civil Case

Terraform Labs and former CEO Do Kwon have reached a settlement with the US Securities and Exchange Commission (SEC) resulting in a combined $4.5 billion in disgorgement and penalties.

The agreement, filed on Wednesday, also includes a permanent ban on Kwon and Terraform Labs from trading crypto asset securities, including those in the Terra ecosystem.

Along with the proposed final judgment, the SEC’s lawyers have submitted a letter to the court, urging the judge overseeing the case, US District Court Judge Jed Rakoff of the Southern District of New York, to approve the settlement.

They stated that if approved, the judgment would serve as a strong deterrent for those engaging in misconduct and attempting to evade federal securities laws by setting new standards for crypto assets.