As part of a civil lawsuit settlement filed by the U.S. Securities and Exchange Commission (SEC), Terraform Labs agreed to pay the regulator $4.47 billion, and Do Kwon, its Co-Founder and ex-CEO, will pay fines totaling $204.3 million.
Terraform Labs settled part of a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC). According to the civil settlement document, the company and its ex-CEO agreed to pay fines totaling approximately $4.67 billion.
The settlement amount for Terraform Labs is $4.47 billion and includes:
- $3.6 billion in taxes that weren’t paid for income the company generated;
- $420 million in civil penalties;
- $467 million in prejudgment interest.
Do Kwon, ex-CEO of Terraform Labs, agrees to pay penalties totaling $204.3 million, including:
- $110 million in tax penalties;
- $80 million in civil penalties;
- $14.3 million in prejudgment interest.
The settlement documents require Do Kwon to transfer $4.7 million into an escrow account within 30 days of the judgment. In addition, crypto-assets held in Luna Foundation Guard accounts and Pyth Network (PYTH) tokens owned by Kwon will be sold to cover fines and interest.
The SEC filed suit in 2023, accusing Terraform Labs and Do Kwon of selling unregistered securities and defrauding investors after Terra’s collapse. In April 2024, a jury found the company and its co-founder guilty of the Terra ecosystem collapse. Do Kwon remains in custody in Montenegro, where he was apprehended while attempting to cross the border illegally. Local courts didn’t decide on his extradition to South Korea or the U.S.
