A recent report reveals that the U.S. Securities and Exchange Commission (SEC) has finalized a multi-billion dollar settlement with the crypto company that played a significant role in triggering the FTX collapse.
As per Reuters, the SEC has agreed to a $4.47 billion settlement with Terraform Labs after finding the stablecoin company guilty of defrauding investors of $40 billion during the 2022 TerraUSD and Luna crash.
The report states that the proposed final verdict for the case was submitted on Wednesday and is pending approval from U.S. District Judge Jed Rakoff. The $4.47 billion settlement comprises $4.05 billion in disgorgement along with interest, in addition to a civil penalty of $420 million, and an $80 million fine for the company’s disgraced founder, Do Kwon.
The report indicates that Terraform filed for bankruptcy in January.
In April, a federal jury found Kwon and Terraform Labs responsible for the fraud allegations made by the SEC.
In a court filing regarding the settlement, the SEC mentioned, “Approval of this judgment would guarantee the maximum refund of funds to affected investors and permanently shut down Terraform. Therefore, this proposed judgment is just, logical, and serves the public interest.”
Do Kwon, the founder of Terraform Labs, is currently awaiting in Montenegro. It was reported last month that he had reached a preliminary agreement with the SEC.
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