Do Kwon appears to have reached a preliminary agreement with the U.S. Securities and Exchange Commission (SEC).

In April, a jury found Kwon and Terraform Labs guilty of 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.

According to the court’s schedule, oral arguments regarding Kwon and the company’s penalties were initially set for May 29th but were canceled because “the parties have informed the Court that they reached a tentative settlement.” Both sides have been instructed to submit documents supporting a final judgment by June 12th.

In April, the SEC filed a motion asking Kwon and Terraform Labs to 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 in Montenegro in 2023 when he was caught trying to board a flight to the United Arab Emirates (UAE) using a counterfeit Costa Rican passport.

He is currently awaiting extradition to the United States and South Korea, where he is wanted by authorities for his involvement in the $40 billion collapse of the Terra ecosystem.

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