Terraform Labs, the company behind the collapsed TerraUSD stablecoin and Luna cryptocurrency, has reached a settlement with the U.S. Securities and Exchange Commission (SEC), ending its bankruptcy proceedings. The settlement, which was announced on September 19, 2023, resolves the SEC's fraud charges against Terraform Labs and its co-founder, Do Kwon. The SEC had alleged that Terraform Labs and Kwon misled investors about the risks associated with TerraUSD and Luna, and that they engaged in fraud and unregistered securities offerings. As part of the settlement, Terraform Labs agreed to pay a $4.47 billion penalty, which includes $3.5 billion in disgorgement, $460 million in pre-judgment interest, and a $420 million penalty. Terraform Labs also agreed to register its digital assets with the SEC and to provide ongoing disclosures to investors. The settlement marks the end of a long and tumultuous chapter for Terraform Labs and its investors. The collapse of TerraUSD and Luna in May 2022 wiped out billions of dollars in investor wealth and sent shockwaves through the cryptocurrency market. The SEC's settlement is a significant step towards holding Terraform Labs and Kwon accountable for their actions and protecting investors from future fraud.