Terraform, Do Kwon Agree in Principle to Settle Fraud Case With SEC: Court Filing

The new development emerges barely two months following the initiation of a civil fraud trial against Kwon and Terraform Labs in New York. During this trial, the SEC announced its intention to levy a record-breaking $5.3 billion penalty to settle the case – the largest fine imposed by the SEC on a cryptocurrency project thus far.

Title of the court listing referred to a telephone conference on May 29, which was conducted without any transcription or recording. All counsel representatives were present during this call. Upon notifying the Court that they had reached a preliminary settlement, the scheduled oral argument for May 29 was subsequently canceled. The parties are now required to submit the necessary documents supporting their settlement to Judge Jed S. Rakoff by June 12.

Kwon Do is now under bail supervision in Montenegro, anticipating extradition to the United States or South Korea. Criminal accusations against him exist in both New York and South Korea.

As a financial analyst, I would rephrase it as follows: I, as an analyst, would note that Kwon is one of the co-founders of the Terra platform and its associated tokens, namely Terra and LUNA. Terra’s algorithmic stablecoin system suffered a collapse in May 2022, which set off a ripple effect throughout the crypto industry.

This is a developing story…