Terraform Labs, a company based in Singapore, and its founder, Do Kwon, have come to a tentative settlement with the US Securities and Exchange Commission (SEC) in a civil fraud case, as reported by Reuters.<\/p>\n
The SEC filed a lawsuit in February 2023 against Terraform Labs and Do Kwon, accusing them of running a large-scale crypto scam involving the sale of digital assets like LUNA and Terra USD (UST).<\/p>\n
The regulator claimed that the defendants deceived investors about the stability of TerraUSD and falsely stated that Terraform’s blockchain was integrated into a popular Korean mobile payment app.<\/p>\n
A recent jury decision found the defendants liable for fraud, giving the SEC a significant win in its efforts to combat fraudulent activities in the digital asset industry.<\/p>\n
Following the verdict, the SEC sought billions of dollars in disgorgement and civil penalties from Terraform Labs and Do Kwon.<\/p>\n
The SEC’s motion, filed on April 5, 2024, indicated that the jury sided with the SEC on all counts, seeking relief in the form of an injunction, disgorgements totaling about $4 billion, prejudgment interest of $545 million, and civil penalties of $420 million for Terraform Labs and $100 million for Do Kwon.<\/p>\n
As part of the settlement agreement, the SEC requested a conduct-based injunction that would bar Terraform Labs from engaging in crypto asset transactions or related activities. The SEC also sought an officer and director bar against Do Kwon and a declaration that any fraud-related monetary sanctions against Terraform Labs are not dischargeable in bankruptcy.<\/p>\n
Both Terraform Labs and Do Kwon have put forth their proposed civil penalties, with Terraform Labs seeking up to $3.5 million and Do Kwon requesting $800,000 in penalties.<\/p>\n
The settlement is pending approval from US District Judge Jed Rakoff in Manhattan, who has asked for supporting documents from both parties by June 12.<\/p>\n
This case’s outcome could have significant implications for future regulatory actions and investor protection in the cryptocurrency space.<\/p>\n
<\/p>\n
As of now, Terra Luna Classic (LUNC) is trading at $0.0001224, showing a nearly 5% increase in the last 24 hours.<\/p>\n
Over the past month, the token has grown by 24% and experienced a notable 115% surge in trading volume compared to the previous day.<\/p>\n
Image source: Shutterstock, chart from TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"
Terraform Labs, a company based in Singapore, and its founder, Do Kwon, have come to a tentative settlement with the US Securities and Exchange Commission (SEC) in a civil fraud case, as reported by Reuters. SEC Lawsuit Details The SEC filed a lawsuit in February 2023 against Terraform Labs and Do Kwon, accusing them of […]<\/p>\n","protected":false},"author":1,"featured_media":12747,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Terraform Labs And Do Kwon Reach Settlement with SEC in Fraud Case - Bitrabo","description":"Terraform Labs, a company based in Singapore, and its founder, Do Kwon, have come to a tentative settlement with the US Securities and Exchange Commission (SEC)"},"footnotes":""},"categories":[316],"tags":[1356,796,4485,696,1642,1988,520,1278,1987],"class_list":["post-12746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-allegations","tag-case","tag-civil","tag-fraud","tag-kwon","tag-labs","tag-sec","tag-settle","tag-terraform"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/12746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=12746"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/12746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/12747"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=12746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=12746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=12746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}