Terraform Labs, the company behind the infamous LUNA and TerraUSD collapse, has reached a massive $4.5 billion settlement with the SECโmarking one of the largest financial penalties in crypto history! ๐ฅ
Hereโs the scoop:
๐ธ $3.5B in disgorgement
๐ฐ $460M in prejudgment interest
โ๏ธ $420M civil penalty
Plus, former CEO Do Kwon will kick in $200M to the bankruptcy estate.
This all comes after the 2022 Terra/LUNA crash, which wiped out $40B in value, shaking the entire crypto market. TerraUSD, an algorithmic stablecoin, collapsed when its peg to the dollar broke, leaving investors in the dust.
โ Kwon Barred from Public Company Leadership:
Alongside his financial contribution, Kwon is permanently banned from serving as an officer or director of any public company.
๐ What Does This Settlement Mean?
SEC Sends a Message: Fraud wonโt go unpunished, and this deal aims to deter similar misconduct.
Swift Recovery for Investors: The funds aim to bring relief to those impacted by the Terra crash.
A Cautionary Tale: This case underscores the risks in algorithmic stablecoins and unregulated promises in the DeFi space.
Do you think these actions will restore trust in the crypto ecosystem? Will we see tighter regulations ahead? Share your thoughts in the comments! ๐ฌ
#CPI_BTC_Watch #LUNA #SEC #BinanceInvestments #Write2Earn! $LUNA