Terraform Labs, the company involved in a significant collapse in 2022, has agreed to pay a substantial settlement of $4.47 billion to resolve a civil lawsuit filed by the US Securities and Exchange Commission (SEC).<\/p>\n
Following the collapse, which led to the loss of $40 billion in investor assets and shook the cryptocurrency industry, the SEC took legal action.<\/p>\n
After a two-week trial where a jury found the company and its co-founder, Do Kwon, liable for the collapse, the SEC sought approval for the settlement from a federal judge in New York.<\/p>\n
As stated in the settlement filing, Kwon’s payment of monetary remedies would be considered met if specific transfers are made to the SEC and the Terraform bankruptcy estate.<\/p>\n
The SEC alleged that Terraform Labs and Kwon engaged in fraudulent activities between April 2018 and May 2022, offering and selling crypto asset \u201csecurities in unregistered transactions\u201d and causing a market value loss of at least $40 billion.<\/p>\n
Regulators further accused the defendants of misleading investors about TerraUSD’s stability and falsely claiming integration into popular Korean mobile payment apps.<\/p>\n
This development marks a success for the US SEC, with Terraform Labs and founder Do Kwon, facing extradition to the US, proposing civil penalties of up to $3.5 million.<\/p>\n
The company’s Luna Classic (LUNC) token is currently trading at $0.0001076, showing an almost 8% increase in the 24-hour period.<\/p>\n
Image source: Shutterstock, chart from TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"
Terraform Labs, the company involved in a significant collapse in 2022, has agreed to pay a substantial settlement of $4.47 billion to resolve a civil lawsuit filed by the US Securities and Exchange Commission (SEC). Following the collapse, which led to the loss of $40 billion in investor assets and shook the cryptocurrency industry, the […]<\/p>\n","protected":false},"author":1,"featured_media":13718,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Terraform Labs Settles $4.47 Billion With US SEC - Bitrabo","description":"Terraform Labs, the company involved in a significant collapse in 2022, has agreed to pay a substantial settlement of $4.47 billion to resolve a civil lawsuit f"},"footnotes":""},"categories":[316],"tags":[4801,580,1988,1749,520,2850,1987,4800,3672],"class_list":["post-13717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-4-47-billion","tag-billion","tag-labs","tag-reaches","tag-sec","tag-settlement","tag-terraform","tag-terraform-labs","tag-us-sec"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/13717","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=13717"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/13717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/13718"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=13717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=13717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=13717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}