Terraform Labs and Do Kwon have reached a "settlement in principle" with the U.S. Securities and Exchange Commission (SEC) regarding a fraud case, according to a court filing ¹. Here are the details of the case:
- Terraform Labs and its co-founder Do Kwon were charged with fraud by the SEC in February 2023.
- The SEC alleged that Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities without proper registration.
- The case went to trial in March 2024, and a jury found Terraform and Kwon liable for fraud.
- The SEC sought a $5.3 billion penalty, but the parties reached a settlement in principle before the trial concluded.
- The terms of the settlement are not yet public, but the parties have until June 12 to file the required documents in support of the settlement.
- Do Kwon is currently out on bail in Montenegro, awaiting extradition to either the U.S. or South Korea. He also faces criminal charges in both countries.