Terraform Labs has reached a historic settlement with the United States Securities and Exchange Commission (SEC), committing to pay approximately $4.47 billion to settle ongoing civil lawsuits. This settlement includes a restitution penalty of approximately $3.6 billion, a civil penalty of $420 million, and prejudgment interest worth nearly $467 million.
Do Kwon, co-founder of Terraform Labs, will have a significant part of this amount under his responsibility. Under the terms of the settlement, Kwon will pay $110 million in restitution penalties and approximately $14.3 million in prejudgment interest. This settlement was reached after a jury determined that Terraform Labs and Kwon were responsible for the collapse of the Terra ecosystem, which resulted in the loss of $40 billion in investor assets.
The settlement document details that “payment of monetary resources owed by Kwon will be deemed fulfilled, provided that the total of Kwon’s transfers to the SEC and Terraform’s bankruptcy estate in the event of bankruptcy reach at least $204,320,196 .
This sum does not include the value of any cryptographic assets transferred into Terraform’s bankruptcy estate, but conditions completion of payment on the transfer of US$4,700,000 to an agreed escrow account within 30 days of final judgment.
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Source: https://portalcripto.com.br/terraform-labs-acerta-pagamento-bilionario-com-sec-para-encerrar-litigio/
