A recent report reveals that the U.S. Securities and Exchange Commission (SEC) has finalized a multi-billion dollar settlement with the crypto company responsible for triggering the FTX collapse.
As per Reuters, the SEC has agreed to a $4.47 billion settlement with Terraform Labs following accusations of defrauding investors of $40 billion during the 2022 TerraUSD and Luna crash.
The report indicates that the proposed final judgment was submitted on Wednesday and is pending approval from U.S. District Judge Jed Rakoff. The $4.47 billion settlement includes $4.05 billion in disgorgement with interest, along with a civil penalty of $420 million, and an additional $80 million fine for the company’s founder, Do Kwon.
Terraform filed for bankruptcy in January, as stated in the report.
In April, a Federal trial court jury found Kwon and Terraform Labs guilty of the SEC’s fraud charges.
In a court filing regarding the settlement, the SEC mentioned, “Approval of this judgment would ensure the maximum recovery of funds for affected investors and permanently shut down Terraform’s operations. Therefore, this proposed judgment is just, equitable, and serves the public interest.”
Terraform Labs’ founder, Do Kwon, is currently residing in Montenegro. It was reported that he recently reached a preliminary agreement with the SEC.
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