Terraform Labs may close products, services in bankruptcy wind-down

Get it before Oct. 30, Terraform Labs tells the third parties it is discussion its wind-down with.

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Do Kwons extradition case goes back to Montenegrin justice minister

According to Montenegros Supreme Court, the US and South Korea had both met the conditions for applying for Do Kwons extradition to face criminal charges.

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Do Kwon Extradition Paused Again by Montenegro Supreme Court

The Supreme Court of Montenegro has suspended the extradition of Terraform Labs co-founder Do Kwon to South Korea.…

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Montenegrin court delays Do Kwons extradition to South Korea

The Terraform Labs co-founder has been in Montenegro since his arrest in 2023, potentially facing extradition to either his native South Korea or the United States.

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Montenegro Court Rules to Finally Extradite Do Kwon to South Korea

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South Korea Defeats United States In Do Kwon Extradition Battle

A months-long legal back and forth will seemingly lead to Kwons extradition to his home country,

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Montenegro Appellate Court upholds Do Kwon extradition to South Korea

Since 2023, the decision to send the Terraform co-founder to South Korea or the United States has been contested in Montenegrin courts.

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Court Rules in Favor of Do Kwons Wife Over Frozen Real Estate Assets

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Montenegrin PM among early investors in Do Kwons Terraform Labs: Report

Prime Minister Spajic was among the early investors who invested in Terraform Labs just days before it was registered in Singapore on April 23, 2018.

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Montenegrin Prime Minister Identified as Early Investor in Terraform Labs: Report

Montenegro's Prime Minister Milojko Spaji faces renewed controversy over his earlier investment in Do Kwon's Terraform Labs.

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DICT Clarifies eGovchain, Terraform Labs to Pay US SEC $4.5B | Key Points | June 14, 2024

Today's crypto news recap: DICT's egovchain, Do Kwon news, and more on local exchange listings.

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U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC

A U.S. District Court judge has agreed to a settlement between the Securities and Exchange Commission (SEC), Terraform Labs and its former CEO, Do Kwon, which would have them pay billions in penalties as well as virtually ban them from the crypto industry, according to the court filings. Source: CoinDesk

The post U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC appeared first on Crypto Breaking News.

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SEC Settles with Terraform Labs and Do Kwon for $4.5 Billion

Terraform Labs and its former CEO, Do Kwon, have agreed to pay about $4.5 billion in recovery and civil penalties to the Securities and Exchange Commission (SEC), thus striking a settlement agreement with the US regulator, according to a court filing yesterday (Wednesday).

Furthermore, Kwon and Terraform Labs would be permanently banned from buying and selling crypto asset securities, including the tokens in the Terra ecosystem.

Another Major Settlement

However, the settlement deal has yet to be approved by US District Court Judge Jed Rakoff of the Southern District of New York (SDNY), who is overseeing the case. The lawyers of the SEC have already filed a letter with the judge for approval.

If approved, the proposed judgment will send an unmistakable deterrent message to not only those who engage in brazen misconduct but also to all those who seek to evade the requirements of the federal securities laws by crafting new standards of behavior for crypto assets that fall under the purview of the federal securities laws, the regulatory lawyers wrote.

Out of the total agreed settlement amount of $4,473,828,306, Kwon personally will have to pay at least $204,320,196.

Initially, the US regulator was seeking $5.3 billion in settlement. However, the legal representatives of the defendants countered that with only $1 million in civil penalties and no recovery or injunction.

Kwons Fate Hangs in a Balance

Kwon was known for building Terraform Labs. However, the project's two cryptocurrencies, TerraUSD and Luna, collapsed in 2022, wiping out about $37 billion in value. The collapse of the algorithmic stablecoin triggered the shuttering and collapse of several other cryptocurrency companies.

After his company collapsed, he disappeared immediately from public sight but was arrested in Montenegro last year while traveling with fake travel documents. Both South Korea and the United States have been trying to extradite him. Meanwhile, he was released from the Montenegro prison on bail due to some technical issues in the extradition ruling against him.

The SEC formally charged Kwon and his company with fraud in April of last year. The trial against Kwon in the US proceeded in his absence.

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Terraform Labs to end operations, Terra community will take over

Terraform Labs is ceasing operations after a $4.47 billion settlement with the SEC, transferring control of the Terra blockchain to the community.

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Terraform Labs Reaches $4.47 Billion Settlement with U.S SEC

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BREAKING: Terraform to pay $4.47B to resolve SEC civil lawsuit

The settlement would resolve a civil lawsuit filed by the Securities and Exchange Commission following Terraforms collapse in 2022.

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Do Kwon: Mystery Transfers After SEC Settlement

Following Terra’s Do Kwon settlement with the SEC, the Luna Foundation Guard [LFG] address has suddenly had many transfers. On-chain sleuths have detected that between 11:29 and 11:33 UTC+8, LFG has moved roughly 2 million AVAX [about $71.2 million] and 39.500k BNB [about 23.5 million USD] to the unmarked address: 0x13…2e27. Although there is no […]

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SEC and Terraform Labs Reach Preliminary Settlement Over Fraud Charges

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Do Kwon and Terraform Labs Reach Settlement with SEC in Civil Fraud Case: Report

Terraform Labs and its Founder, Do Kwon, have reacheda settlement with the US Securities and Exchange Commission (SEC) followingallegations of fraud surrounding the collapse of the stablecoin TerraUSD,Reuters reported. The agreement, disclosed on a court website, arrived after ajury found Kwon and Terraform Labs liable for civil fraud charges in April.

Criminal Charges Still Pending

The SEC had accused the company and Kwon of misleadinginvestors in 2021 about the stability of TerraUSD, a stablecoin designed tomaintain its value to $1. Additionally, they were accused of falsely claimingthat Terraform's blockchain was utilized in a popular Korean mobile paymentapp.

The settlement, though its terms remain undisclosed,marks a significant development in the ongoing legal saga between TerraformLabs, Do Kwon, and the SEC. US District Judge Jed Rakoff in Manhattan hasrequested supporting documents from both parties by June 12.

Initially, the SEC sought substantial penalties,including relinquishing $5.3 billion in alleged ill-gotten gains fromstablecoin sales, fines totaling hundreds of millions of dollars, anda ban on dealing in crypto asset securities for both Kwon and Terraform Labs.

The collapse of TerraUSD and Luna, a token closelytied to TerraUSD, affected the cryptocurrency markets in May 2022, resulting inan estimated loss of over $40 billion for investors. Despite the settlement,Kwon still faces related criminal charges in both the US and South Korea,though he maintains his innocence.

Kwon's extradition saga recently took a new turn afterMontenegro's Court of Appeal referred the case back to the High Court forretrial. This action followed arguments from Kwon's lawyers that questioned thevalidity of the initial ruling.

Kwon's Extradition Remains Uncertain

The decision to extradite Kwon was returned to the High Court in Montenegro after theCourt of Appeal granted an appeal by his legal team. The Court of Appealaccepted the arguments presented by Kwon's lawyers, canceling the previousdecision by the High Court and mandating a retrial.

The initial ruling from the High Court in Podgorica,dated April 8, 2024, allowed for Kwon's extradition but was criticized forlacking decisive facts and valid reasons. The High Court must now ensure thatKwon's consent to extradition is voluntary, informed, and irrevocable.

The US has requested Kwon'sextradition, filing eight charges against him and expressing a willingness toprosecute him in absentia. Kwon disappeared fromthe public eye following the catastrophic collapse of TerraUSD and Lunacryptocurrencies in 2022, which wiped out nearly $37 billion from the cryptomarket and led to several bankruptcies. He was later arrested in Montenegro.

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Terraform, Do Kwon to reach fraud settlement with SEC

Terraform Labs and CEO Do Kwon are finalizing a settlement with the SEC. Both parties are expected to submit the final terms for court approval by mid-June.

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