Terraform and Do Kwon Reach Preliminary Settlement with SEC Over Fraud Case: Court Filing
Do #kwon , currently out on bail in Montenegro and awaiting extradition to either the U.S. or South Korea, and #Terraform Labs have reached a "settlement in principle" with the U.S. Securities and Exchange Commission (#SEC ) concerning a fraud case, according to a court filing on Thursday.
This development occurs less than two months after a civil fraud trial against Kwon and Terraform Labs began in New York. During the trial, the SEC sought a $5.3 billion penalty, the largest fine ever imposed on a cryptocurrency project. The court listing noted a May 29 telephone conference with all parties present, during which it was announced that a settlement had been reached in principle. Consequently, an oral argument scheduled for May 29 was canceled. The parties are required to submit the necessary documents supporting the settlement to Judge Jed S. Rakoff by June 12.
Kwon, co-founder of the algorithmic #Stablecoins Terra and its sister token $LUNA within the Terra ecosystem, faces additional criminal charges in New York and South Korea. The Terra ecosystem's collapse in May 2022 triggered a significant industry-wide contagion.