America

Read

Terraform Labs agreed to pay a bigger penalty than the fine the U.S. Justice Department levied on crypto exchange Binance.&nbsp; 
According to <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.272.0.pdf" target="_blank" rel="">court filings</a> on Wednesday, Terraform Labs reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) related to the implosion of TerraLuna (<a href="https://crypto.news/price/terra-luna-classic/" target="_blank" rel="">LUNC</a>) and TerraUSD (UST). 
The proposed penalty submitted by SEC prosecutors followed a two-week trial in March and a preliminary deal <a href="https://crypto.news/terraform-labs-do-kwon-reach-preliminary-deal-with-sec-in-terrausd-case/" target="_blank" rel="">disclosed</a> late last month.&nbsp;A jury determined that both Terraform and its founder, Do Kwon, were legally responsible for the company’s crash in 2022.&nbsp; 
The <a href="https://crypto.news/price/terra-luna-classic/" rel="">settlement</a> is subject to approval from a New York judge and could be one of the largest settlements between a crypto entity and a U.S. regulator. The SEC initially sought $5.3 billion in fines from both parties. 
Federal prosecutors initially <a href="https://crypto.news/sec-seeks-5-3b-in-penalty-from-terraform-labs-and-co-founder-do-kwon/" rel="">argued</a> for $4.7 billion in disgorgement, accompanied by a combined $520 million in civil penalties from the firm and Kwon. 
 You might also like: <a href="https://crypto.news/do-kwons-serbian-enterprise-outlasts-terraform-labs-collapse/" rel=""> Do Kwon’s Serbian enterprise outlasts Terraform Lab’s collapse </a> 
<h2 class="wp-block-heading" id="terraform-s-founder-extradition">Terraform’s founder extradition&nbsp;</h2> 
Do Kwon is also awaiting extradition in the Balkans, pending approval for his removal to either the U.S. or his home nation, South Korea. 
Kwon’s sentence for travel paper fraud expired in March, and the fugitive was <a href="https://crypto.news/do-kwon-montenegro-prison-release-extradition/" target="_blank" rel="">released</a> on home arrest from Spuž prison in Montenegro. The one-time crypto mogul was previously on the run, after Terra’s $60 billion collapse reverberated through the digital asset industry and unleashed cascading bankruptcies on several entities. 
Extradition to America or South Korea was approved on several occasions. However, the decisions were <a href="https://crypto.news/do-kwons-lawyers-again-appeal-extradition-decision/" rel="">overturned</a> in a continued back-and-forth between attorneys and Montenegro’s judicial system. At press time, Kwon’s extradition destination is yet unknown but the former crypto-billionaire could face long years in prison over his role in Terra’s tumble. 
 Read more: <a href="https://crypto.news/do-kwons-lawyers-again-appeal-extradition-decision/" rel=""> Do Kwon’s lawyers again appeal extradition decision </a>

Terraform Labs to settle SEC case for $4.47b

Table of Contents

crypto.news

Other articles published on Jun 12, 2024

Bitget Supports Bitcoin Lightning Network to Propel BTC Ecosystem Advancement

🗒 Daily Newsletter | Wednesday, June 12th, 2024

Irys secures $8.9m to ‘accomplish the next phase of our growth’

Solana Labs Launches Bond for Global Brands to Boost Customer Engagement!

AI Coins Trigger Crypto Market Rebound, What’s Happening?

Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

Join our free newsletter for daily crypto updates!