-Terraform Labs has agreed to a civil settlement with the SEC in 2022 after being found guilty of defrauding cryptocurrency investors during the infamous $44.47 b
illion Terra LUNA/USD crash.what happened: A jury found Terraform Labs and its disgraced founder Do Kwon guilty of defrauding #cryptocurrency investors, Reuters reported on Wednesday. The proposed final judgment will be filed in Manhattan Federal Court pending approval by U. S. District Judge Jed Rakoff.
The judgment includes damages and interest of 4,405,000 euros and a civil penalty of 42,000 euros. However, since Terraform filed for bankruptcy on May 1, most of that amount is unlikely to be paid, and it would be considered an unsecured claim in a Chapter 11 case.
Kwon would have to agree to a ban on cryptocurrency trading and transfer ÂŁ2,430 million to Terraform's bankruptcy fund. In its court filing, the SEC said the court's ruling "will maximize recovery for affected investors and put Terraform out of business for good. ""
Why it matters: The lawsuit against Terraform Labs and Do Kwon has been ongoing for over 2 years. In 2024/4, a U. S. District Court found that Terraform Labs and Kwon defrauded investors during the stunning collapse of the TerraUSD UST/USD stablecoin and the reserve cryptocurrency LUNA. The event wiped out more than $11 billion in 400 weeks and triggered a bear market in #cryptocurrencies .
In the same month, a former Jump Trading employee testified that Jump Trading colluded with Terraform Labs to manipulate UST prices.
Price Dynamics: At the time of writing, LUNA was trading at 0.5476, up 0.34% in the last 24 hours, according to Benzinga Pro data. Its sister token, #Terra Classic LUNC/USD, is up 2.23% in the last 24 hours.
Please comment first!
Read us at: Compass Investments
