SEC reaches settlement with Do Kwon and Terraform Labs

Progress has been made in the proceedings against Do Kwon. A settlement is now expected.

Terraform Labs and its former founder and CEO Do Kwon have reached a settlement with the SEC. This is according to court documents.

It says: "The hearing originally scheduled for May 29, 2024 has been canceled because the parties have informed the court that they have reached a settlement in principle."

It is not known exactly what this settlement means, as the hearing was held by telephone.

The background to this is a fraud case. The U.S. Securities and Exchange Commission accuses Terraform Labs of selling the algorithmic stablecoin Terra USD (UST) to investors without proper registration.

In May 2022, the entire structure finally collapsed - a major trigger for the crypto winter that followed.

Bitcoin fell below $16,000 at its peak.

The fines Do Kwon and his associates can now expect have yet to be clarified.

The amount involved is US$5.3 billion.

The proceedings against Do Kwon are currently taking place in his physical absence. He currently resides in Montenegro.