Do Kwon seems to have reached an initial agreement with the U.S. Securities and Exchange Commission (SEC).
In April, a jury found Kwon and Terraform Labs responsible for deceiving investors about the stability of the algorithmic stablecoin Terra USD, which lost its peg and collapsed in 2022, causing a widespread drop in crypto prices.
The court docket for the case indicates that oral arguments concerning Kwon and the company’s penalties were originally scheduled for May 29th but were canceled due to the parties reaching a preliminary settlement. Both sides have been instructed to submit supporting documents for a final judgment by June 12th.
In April, the SEC filed a motion requesting that Kwon and Terraform Labs pay over $4.19 billion in disgorgement, along with $545.7 million in prejudgment interest. The regulator also sought a $100 million civil penalty from Kwon and a $420 million penalty from the company.
Kwon was initially arrested by authorities in Montenegro in 2023 when he was caught trying to board a flight to the United Arab Emirates (UAE) with a counterfeit Costa Rican passport.
He is currently awaiting extradition to both the US and South Korea, where authorities are seeking him for his involvement in the $40 billion collapse of the Terra ecosystem.
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