Terraform Labs and Do Kwon Reach Tentative Settlement with SEC

Settlement follows civil fraud verdict and could lead to significant penalties for the collapse of TerraUSD and LUNA.

Overview

Court filings reveal the agreement in principle, with documents due by June 12.
The SEC initially sought a $5.3 billion penalty, its largest ever for a crypto case.
The collapse of TerraUSD and LUNA in 2022 led to $40 billion in losses and a prolonged 'crypto winter'.
Do Kwon also faces criminal charges in both the U.S. and South Korea.
Kwon is currently out on bail in Montenegro, awaiting extradition.