2024-06-14 09:01:26

SEC Settlement with Terraform Labs: Financial Implications and Legal Consequences

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The recent settlement between the U.S. SEC and Terraform Labs raises concerns as the SEC may only receive a fraction of the agreed-upon $4.5 billion penalty due to the company's financial struggles.

Despite the large settlement amount, Terraform's insolvency and lack of assets cast doubt on the inflow of funds to the U.S. government. The settlement, considered a fair penalty for one of the largest securities fraud cases in U.S. history, includes fines, penalties, and a ban from the crypto industry for Terraform Labs and its founder, Do Kwon.

The approval of the settlement by a U.S. judge signals legal consequences for Terraform Labs and Kwon, who is currently in custody awaiting extradition decisions from the U.S. and South Korea.

The press radar on this topic:

Cointelegraph.com News
13. Juni 2024 um 16:37

SEC may receive ‘only a fraction’ of Terraform’s settlement

Finance
The U.S. SEC may only receive a small portion of its multibillion-dollar settlement with Terraform Labs due to the company's financial situation. Despite the low chances of receiving funds, the SEC considers the settlement a fair penalty for one of the largest securities frauds in U.S. history.
Heise News Wirtschaft
13. Juni 2024 um 21:20

Terraform Labs settles with SEC: 4.2 billion dollars mean nothing | heise online

Finance
Terraform Labs and founder Do Kwon have reached a settlement with the US Securities and Exchange Commission (SEC). The settlement includes injunctions and a fine of 4.5 billion US dollars. However, the money is unlikely to flow into the US government budget due to insolvency and lack of assets, but will partially benefit victims.
Cointelegraph.com News
13. Juni 2024 um 22:34

US judge approves Terraform’s $4.5B settlement with SEC

Finance
A US judge has approved Terraform's $4.5 billion settlement with the SEC, involving fines, penalties, and a ban from the crypto industry. The founder, Do Kwon, is currently in custody in Montenegro awaiting extradition decisions from the US and South Korea. Terraform Labs will pay significant disgorgement fines, civil penalties, and prejudgment interest as part of the settlement.
CoinDesk
13. Juni 2024 um 21:33

U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC

Finance
A U.S. District Court judge approved a settlement between the SEC, Terraform Labs, and its former CEO Do Kwon, imposing a $4.5 billion penalty and banning them from buying and selling crypto asset securities. The settlement is below the SEC's initial offer but higher than Terraform's proposed civil penalty of $1 million. Kwon, who is awaiting extradition in Montenegro, was not present at the trial where the settlement was reached.
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