United States of America: Closed SEC case against Terraform Labs for alleged violation of Securities Act

On 13 June 2024, the Securities and Exchange Commission (SEC) announced the closure of its public lawsuit against Terraform Labs PTE, Ltd. and Do Kwon, which agreed to pay for a settlement in excess of USD 4.5 billion. This settlement follows a unanimous jury verdict that found them liable for conducting a prolonged fraud involving crypto asset securities, leading to substantial investor losses. Terraform agreed to pay disgorgement, prejudgment interest, and a civil penalty and committed to ceasing its operations and distributing its remaining assets to the affected investors and creditors.