{"id":22748,"date":"2024-06-13T14:00:47","date_gmt":"2024-06-13T11:00:47","guid":{"rendered":"https:\/\/coinengineer.io\/?p=22748"},"modified":"2024-06-13T11:19:04","modified_gmt":"2024-06-13T08:19:04","slug":"terraform-agreed-with-sec-will-pay-4-47-billion-penalty","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/terraform-agreed-with-sec-will-pay-4-47-billion-penalty\/","title":{"rendered":"Terraform Agreed with SEC: Will Pay $4.47 Billion Penalty"},"content":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) on Wednesday filed a “proposed final approval order” with U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan. Under the proposed verdict, Terraform<\/a> will pay $3.58 billion in restitution, $420 million in civil penalties and bar Do Kwon from becoming a director or officer of any public company.<\/p>\n

Terraform<\/a> Labs has agreed to pay a $4.47 billion fine after reaching a settlement with the US Securities and Exchange Commission (SEC) over its algorithmic stablecoin falling dramatically in 2022.<\/p>\n

The SEC filed a “proposed final approval order” on Wednesday and asked U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan.<\/p>\n

\u201cThe proposed consent order addresses the magnitude of this fraud, implements significant remedial, punitive, and deterrent measures, includes multibillion-dollar judgment, and provides for meaningful and expeditious relief for investor victims,\u201d the SEC said in the court filing.<\/p>\n

\u201cIf approved, the proposed resolution would send a clear deterrent message not only to those who engage in brazen behavior, but also to all individuals who seek to establish new standards of conduct to evade the requirements of the federal securities laws.\u201d<\/p>\n

Terraform and its founder Do Kwon reached an “agreement in principle” with the SEC after oral argument was canceled in late May. Under the proposed order, Terraform would pay $3.58 billion in restitution, $420 million in civil penalties and bar Kwon from becoming a director or officer of any public company.<\/p>\n

Kwon also must pay approximately $204 million “to the Terraform bankruptcy estate for distribution to injured investors,” the SEC said.<\/p>\n

The SEC filed a lawsuit against Terraform and Kwon over the algorithmic stablecoin Terra USD (UST) in February 2023. The agency said the company defrauded and misled investors. Just a few months ago, both sides were arguing over penalty amounts. Lawyers for Terraform and Kwon said the fines should be closer to $1 million, while the SEC recommended they pay $5.3 billion.<\/p>\n

\n

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0Telegram,\u00a0<\/strong><\/a>YouTube<\/strong><\/a>,\u00a0and\u00a0Twitter<\/strong><\/a>\u00a0channels for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) on Wednesday filed a “proposed final approval order” with U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan. Under the proposed verdict, Terraform will pay $3.58 billion in restitution, $420 million in civil penalties and bar Do Kwon from becoming<\/p>\n","protected":false},"author":6,"featured_media":11091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[39,2868,6815],"class_list":["post-22748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-sec","tag-terraform-labs","tag-terraform-sc"],"yoast_head":"\nTerraform Agreed with SEC: Will Pay $4.47 Billion Penalty - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/terraform-agreed-with-sec-will-pay-4-47-billion-penalty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Terraform Agreed with SEC: Will Pay $4.47 Billion Penalty - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"The U.S. Securities and Exchange Commission (SEC) on Wednesday filed a “proposed final approval order” with U.S. District Court Judge Jed Rakoff for the Southern District of New York to approve the plan. 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