Historic Agreement with the SEC from the Cryptocurrency Company: More than 4 Billion Dollars!
The US Securities and Exchange Commission (SEC) reached an agreement with the bankrupt cryptocurrency company.
Terraform Labs, the developer of TerraUSD and Luna tokens, reached a settlement with the SEC following the accusations against it.
Will pay billions of dollars
It was decided that Terraform Labs defrauded investors of approximately $40 billion as TerraUSD and Luna tokens crashed in 2022.
The final decision regarding Terraform and the company's founder, Do Kwon, was announced in court the other day. This still needs to be approved by District Judge Jed Rakoff.
According to the decision, Terraform will have to transfer $4.05 billion in benefits and pay a $420 million fine.
In addition to the total fine of $4.55 billion, Kwon was also ordered to pay a fine of $80 million.
Will they be able to pay the fine?
According to Reuters, it does not seem likely that Terraform will be able to pay most of these fines. Terraform went into liquidation after filing for bankruptcy.
“Enforcement of this decision will ensure maximum refunds to injured investors and will permanently terminate Terraform's operations,” the SEC said.
The SEC filed a lawsuit against Terraform on the grounds that it deceived investors about the stability of the so-called stablecoin called TerraUSD.
Terraform and Kwon did not object to the decision taken against them.