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📝 Terraform Labs and Do Kwon reach settlement with SEC over TerraUSD collapse
Terraform Labs and its founder Do Kwon have reached a tentative settlement with the US Securities and Exchange Commission (SEC).
The SEC accused them of misleading cryptocurrency investors before the collapse of the TerraUSD stablecoin in 2022.
🔸 Do Kwon agrees to settle the civil fraud case with the Securities and Exchange Commission
Details of the settlement remain unannounced. In April, a jury found Kwon and Terraform Labs liable on civil fraud charges. The SEC alleged that in 2021, they misled investors about the stability of TerraUSD and falsely claimed that Terraform's blockchain was used in a popular Korean mobile payment app.
US District Judge Jed Rakoff in Manhattan has asked both parties to submit papers supporting the settlement by June 12. Representatives for the SEC and the defendants declined to comment.
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