Terra. Consensus: 01

Mr. Jed S. Rakoff

United States District Judge

Daniel Patrick Moynihan United States Courthouse

500 Pearl Street

New York, NY 10007-1312

Re: SEC v. Terraform Labs et al., no. 1:23-cv-1346 JSR)

Mr. Judge Rakoff:

Pursuant to the Court's order dated May 29, 2024, filed simultaneously with respect to Plaintiff Securities and Exchange Commission ("SEC"), Defendants Terraform Labs PTE Ltd. ("Terraform"), and Do Hyeong Kwon (*Kwon, collectively the "Defendants"). respectfully requests approval of the proposed final consent judgment. A jury found that Kwon and Terraform were responsible for willfully and recklessly orchestrating one of the largest securities frauds in U.S. history. The proposed consent judgment addresses both the magnitude of this fraud and a multibillion-dollar lawsuit against Defendants. By implementing significant compensatory, punitive, and deterrent remedies, including a resolution, and by providing meaningful and expeditious recovery for investor victims who collectively lost billions of dollars when Defendants' scheme collapsed, the proposed resolution would eliminate not only the brazen abusers, but also federal securities investors. By creating new standards of conduct for cryptoassets that fall within its scope, it will send a clear deterrent message to anyone who tries to evade the requirements of the federal securities laws. To resolve this case, Terraform agrees to provide the SEC with all relief it requests from the Court. The settlement regarding Kwon gives the SEC nearly all of the relief it requested against Kwon, but also specifically states that Kwon will transfer hundreds of millions in assets to satisfy his monetary obligations under the terms of the agreement. #sec #lunc #ustc #luna #TFL $USTC $LUNC $LUNA