Terraform Labs has agreed to a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) over the collapse of TerraLuna (LUNC) and TerraUSD (UST). This settlement comes after a two-week trial in March and is larger than the fine imposed on Binance by the U.S. Justice Department.
A New York judge must approve the proposed settlement, which could become one of the largest between a cryptocurrency entity and a U.S. regulator. The SEC initially sought $5.3 billion in fines, while federal prosecutors advocated for $4.7 billion in disgorgement plus $520 million in civil penalties.
Terraform’s founder, Do Kwon, is awaiting extradition from Montenegro to either the U.S. or South Korea, following his release from home arrest. Kwon’s fate remains uncertain as his extradition has faced multiple legal hurdles.
This settlement underscores the increasing regulatory scrutiny on the crypto industry, highlighting the significant financial and legal repercussions of non-compliance.
