Terraform Labs and its former CEO, Do Kwon, are set to finalize a settlement with the U.S. Securities and Exchange Commission (SEC) following accusations of defrauding investors. The agreement, announced in a recent court filing, is expected to be completed by June 12, 2024.
The SEC's case focused on the misleading promotion and sale of TerraUSD (UST) and other Terra-related tokens. The settlement involves substantial financial penalties, including up to $5.3 billion sought by the SEC for disgorgement and civil penalties. Additionally, the SEC proposes a ban on Kwon serving as an officer or director of any securities-issuing entity. Kwon faces further legal challenges, including potential charges in Montenegro.
This settlement highlights the ongoing regulatory scrutiny faced by cryptocurrency firms and the importance of compliance in the industry.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
