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Do Kwon, Terra Reach Settlement With SEC; LUNA Price Jumps 20% – Crypto News

Published

12 months ago

May 30, 2024

Dripp

Terraform Labs, the startup led by Do Kwon and responsible for the collapsed LUNA cryptocurrency and TerraUSD (UST) stablecoin, has agreed in principle to settle with the United States Securities and Exchange Commission (SEC) over fraud charges. News of the tentative settlement was first reported by Reuters. The court listing indicates that all parties have informed the court of an agreement, with filings due by June 12.

Terraform Labs Reaches Settlement with SEC

In April, a jury found Kwon and Terraform Labs guilty of civil fraud charges. They were declared liable for defrauding investors regarding the coins. The settlement will likely determine the financial penalties Kwon and Terraform Labs must pay. It could also impact Kwon’s future involvement with the company. The agreement is a significant step in resolving the legal issues faced by the firm.

The court’s listing shows a crucial development in the case against Terraform Labs. It marks a potential conclusion to the litigation process. Filings related to the settlement, clarifying the agreed terms, are expected by June 12. The settlement could include stipulations regarding Kwon’s future roles and responsibilities within the company. Following the settlement news, LUNA’s price experienced a significant increase. The cryptocurrency’s value surged by 20%, reflecting positive market sentiment.

This is a developing story, so come back for additional details.

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