SEC and Terraform Labs Reach Preliminary Settlement Over Fraud Charges
- The settlement is likely to include fines and limits on Kwons future financial activity.
- Kwons legal troubles are far from over with this settlement.
Terraform Labs, led by Do Kwon that created the defunct LUNA cryptocurrency and the stablecoin TerraUSD (UST), has reached a preliminary settlement agreement with the SEC over fraud charges. Reuters broke the news of the settlements preliminary terms. All parties have notified the court of an agreement, according to the court listing, and filings are expected by June 12.
A provisional settlement has been reached between the U.S SEC and Terraform Labs and its CEO, Do Kwon, over fraud accusations. In April, a jury convicted Kwon and his firm of misleading investors over their crypto products; this accord followed their conviction. By June 12, the formal filings are due, and the settlement is likely to include details about fines and limits on Kwons future financial activity.
Legal Troubles Far From Over
Moreover, with the latest announcement of the settlement, Kwon and Terraform Labs were able to partly stop their legal disputes. The SEC had previously sought steep civil fines and, in certain cases, a lifetime prohibition from dealing in securities from the duo. Given the seriousness of the accusations, it is probable that monetary damages will be included in this settlement. No one will know how much of a financial hit Kwon and Terraform Labs will take until the June filings, but that information is vital.
Also, Kwons legal troubles are far from over with this settlement. Both South Korean authorities and the United States Department of Justice (DOJ) have continued to press charges against him, claiming a range of financial offenses. The intricacy of these accusations serves to emphasize the larger legal approach taken against Kwons activities, which have been scrutinized ever since his crypto firm collapsed.
Highlighted Crypto News Today:
Goldman Sachs Calls Spot Bitcoin ETF Approval a Psychological Turning Point
Read more: https://thenewscrypto.com/sec-and-terraform-labs-reach-preliminary-settlement-over-fraud-charges/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
