Do Kwon’s Terraform Labs agrees to settle fraud charges with the SEC, sending LUNA’s price up 20% amid positive market sentiment.
Terraform Labs, the startup led by Do Kwon and responsible for the collapsed LUNA cryptocurrency and TerraUSD (UST) stablecoin, has agreed in principle to settle fraud charges with the United States Securities and Exchange Commission (SEC). Agreed on.
The tentative settlement was first reported by Reuters. Court filings indicate that all parties have notified the court of an agreement, which is due to be filed by June 12.
Terraform Labs Reaches Settlement With SEC
In April, a jury found Kwon and Terraform Labs guilty of civil fraud charges. He was held responsible for defrauding investors regarding the coins.
The settlement will likely determine financial penalties that Kwon and Terraform Labs will have to pay. It may also affect Kwon’s future involvement with the company. The agreement is an important step in resolving the legal issues facing the firm.
The court filing marks a significant development in the case against Terraform Labs. This indicates the likely outcome of the litigation process.
A settlement filing, outlining the agreed terms, is expected by June 12. The settlement may include terms regarding Kwon’s future role and responsibilities within the company. Following news of the settlement, LUNA’s price rose significantly. The cryptocurrency gained 20 percent in value, reflecting positive market sentiment.