Terra Classic

Terra

Datawallet

Read

The U.S. Securities and Exchange Commission and Terraform Labs, along with Do Kwon, have reached a preliminary settlement concerning charges of misleading investors about TerraUSD.
Singapore-based Terraform Labs and its founder Do Kwon have reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC) regarding accusations of misleading crypto investors before the 2022 collapse of the TerraUSD stablecoin.
As per <a href="https://www.reuters.com/legal/terraform-labs-do-kwon-agree-settle-sec-fraud-case-2024-05-30/" target="_blank" rel="noopener noreferrer nofollow">Reuters</a>, which cites court documents, the terms of the deal aren’t yet clear, although a jury earlier found Kwon and Terraform Labs liable on civil fraud charges.
The SEC accused Terraform Labs and Kwon of deceiving investors in 2021 about the stability of TerraUSD, a stablecoin designed to maintain its value at $1. The regulator also alleged that Kwon and the firm falsely claimed Terraform’s blockchain was used in a popular Korean mobile payment app.
The crypto community appears to be divided on the settlement’s implications. Some anticipate a positive impact on Terra Classic’s (LUNC) price, while <a href="https://x.com/feinht/status/1796219318587572290" target="_blank" rel="noopener noreferrer nofollow">others</a> <a href="https://x.com/Giovanni6799/status/1796215979288019388" target="_blank" rel="noopener noreferrer nofollow">question</a> how the firm plans to return the money.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Lmao now LUNA2 will moon. Unbelievable coincidence 😀 😀 😀— Datawallet (@Datawalletcom) <a href="https://twitter.com/Datawalletcom/status/1796207074470191183?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 30, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
Previously, the SEC demanded that Kwon and Terraform Labs <a href="https://crypto.news/do-kwon-extradition-approved-again/" target="_blank" rel="noopener noreferrer nofollow">forfeit</a> $5.3 billion in alleged ill-gotten gains from stablecoin sales. It also sought fines of $420 million for the company and $100 million for Kwon, along with bans on dealing in “crypto asset securities.”
You might also like: <a href="https://crypto.news/do-kwon-extradition-approved-again/" rel="noopener noreferrer nofollow"> Montenegrin court approves Do Kwon’s extradition once again </a>
Following the news, LUNC surged over 9% to $0.00012, and the new token, LUNA, gained over 13%, according to CoinMarketCap.
The collapse of TerraUSD and Terra Classic <a href="https://crypto.news/what-happened-to-terra-luna-journey-from-crypto-kings-to-fallen-stars/" target="_blank" rel="noopener noreferrer nofollow">disrupted</a> cryptocurrency markets in May 2022, with the SEC estimating that investors lost over $40 billion. Kwon and his company argued that the maximum fines should be $3.5 million for Terraform Labs and less than $1 million for the TerraUSD mastermind.
Kwon, who faces criminal charges in the U.S. and South Korea, denies any wrongdoing. Arrested in March 2023, he is still awaiting extradition from Montenegro.
Read more: <a href="https://crypto.news/do-kwons-lawyers-again-appeal-extradition-decision/" rel="noopener noreferrer nofollow"> Do Kwon’s lawyers again appeal extradition decision </a>

Terraform Labs, Do Kwon reach preliminary deal with SEC in TerraUSD case

crypto.news

Other articles published on May 31, 2024

Bitcoin Investors Are Betting on These Tokens

Looking for a Low-risk, High ROI Crypto Investment? Why Dreamcars is an Excellent Option

Crypto Prices Hardly Vary As Traders Await PCE Data

Cryptocurrency Fetch.ai Down More Than 4% Within 24 hours

CARV brings on Animoca Brands as strategic investor and node operator

Community Reactions to Ethereum’s Potential All-Time High

Join our free newsletter for daily crypto updates!