Fine

Billion

<h4><strong>This includes a $4.5 billion payment in disgorgement, prejudgment interest, and civil penalties. </strong></h4> 
<p>This settlement agreement, submitted on Wednesday, is pending approval by the New York judge overseeing the case.</p> 
<h5><strong>Settlement Includes $4.5 Billion Fine and Permanent Trading Ban</strong></h5> 
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      <p>The agreement permanently bans Terraform Labs and <a href="https://www.altcoinbuzz.io/?s=Do+Kwon" target="_blank" rel="noopener">Do Kwon</a> from trading crypto asset securities. This ban encompasses all tokens within the Terra ecosystem. This ban is a major regulatory measure to limit the activities of the crypto firm and its former CEO.</p> 
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<p>The financial breakdown of the settlement includes a requirement for Do Kwon to pay at least $204,320,196 personally. The total amount of $4,473,828,306 was established to address the SEC’s allegations against Terraform Labs.</p> 
<p><img decoding="async" class="wp-image-142881 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxddgfhgfhgjjhkjhk-276x300.jpg" alt="" width="462" height="502" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxddgfhgfhgjjhkjhk-276x300.jpg 276w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxddgfhgfhgjjhkjhk-386x420.jpg 386w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxddgfhgfhgjjhkjhk.jpg 390w" sizes="(max-width: 462px) 100vw, 462px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/CoinDesk/status/1800956096695169336" target="_blank" rel="noopener">X</a></strong></h6> 
<p>This settlement amount is slightly lower than the SEC’s initial demand of $5.3 billion but significantly higher than the $1 million civil penalty suggested by Terraform Labs in their <a href="https://dd80b675424c132b90b3-e48385e382d2e5d17821a5e1d8e4c86b.ssl.cf1.rackcdn.com/external/sec-vs-terraform.pdf" target="_blank" rel="noopener">April memorandum</a> opposing the SEC’s motion for final judgment. Terraform Labs’ proposal did not include any disgorgement or injunctions, highlighting the substantial gap between the SEC’s enforcement stance and the company’s suggested penalties.</p> 
<h5><strong>More About The SEC &amp; Terra Labs</strong></h5> 
<p>The SEC’s charges against Terraform Labs and Kwon were rooted in allegations of fraud and the misleading of investors regarding the stability of the TerraUSD (UST) stablecoin, which collapsed dramatically in May 2022. The <a href="https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/terra-luna-and-ust-crisis-explained/" target="_blank" rel="noopener">implosion of UST</a> led to massive financial losses for investors and triggered broader instability in the cryptocurrency markets.</p> 
<p><img decoding="async" class="wp-image-142883 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdhjyt-168x300.jpg" alt="" width="426" height="760" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdhjyt-168x300.jpg 168w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdhjyt-235x420.jpg 235w" sizes="(max-width: 426px) 100vw, 426px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/Eljaboom/status/1801127117486202955" target="_blank" rel="noopener">X</a></strong></h6> 
<p>For Terraform Labs and Do Kwon, this settlement marks a significant and costly resolution to their legal battles with <a href="https://www.altcoinbuzz.io/?s=us+regulators" target="_blank" rel="noopener">U.S. regulators</a>. It also underscores the growing scrutiny and regulatory pressure faced by crypto firms operating in the United States. The case highlights the SEC’s commitment to holding crypto companies accountable and serves as a warning to others in the industry about the consequences of regulatory violations.</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone size-full wp-image-123700" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" sizes="(max-width: 1197px) 100vw, 1197px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" alt="" width="1197" height="148"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/terraform-labs-kwon-to-pay-4-5b-in-sec-deal/">Terraform Labs, Kwon to Pay $4.5B in SEC Deal</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Terraform Labs, Kwon to Pay $4.5B in SEC Deal

Altcoin Buzz

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