Terraform agreed with the SEC: It will pay a fine of $ 4.47 billion.
The U.S. Securities and Exchange Commission (SEC) on Wednesday filed a “proposed final approval order” with U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan. Under the proposed verdict, Terraform will pay $3.58 billion in restitution, $420 million in civil penalties, and bar Do Kwon from becoming a director or officer of any public company.
Terraform Labs agreed to pay a $4.47 billion penalty after reaching a settlement with the US Securities and Exchange Commission (SEC) over its algorithmic stablecoin falling dramatically in 2022.
The SEC filed a “proposed final approval order” on Wednesday and asked U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan.
The SEC said in its court filing:
“The proposed consent judgment addresses the magnitude of this fraud, implements significant remedial, punitive, and deterrent measures, includes multibillion-dollar judgment, and ensures meaningful and expeditious relief for investor victims.
“If approved, the proposed resolution would send a clear deterrent message not only to those who engage in brazen behavior, but also to all individuals who attempt to establish new standards of conduct to evade the requirements of the federal securities laws.”
Terraform and its founder Do Kwon reached an “agreement in principle” with the SEC after oral argument was canceled in late May. Under the proposed verdict, Terraform will pay $3.58 billion in restitution, $420 million in civil penalties and bar Kwon from being a director or officer of any public company.
Kwon also must pay approximately $204 million “to the Terraform bankruptcy estate for distribution to injured investors,” the SEC said.