Collapsed Terraform, Do Kwon Agree To Pay $4.5B To Settle SEC Case

The U.S. and South Korea have been pushing for the extradition of Do Kwon, the founder of bankrupt crypto firm Terraform Labs. (Credit: AFP)

KEY POINTS

• Kwon and Terraform will be permanently banned from buying and selling crypto securities
• The former crypto darling also has to pay "no less than" $204.3 million under the settlement agreement
• Lawyers said the settlement should send a message to the industry that Kwon's "brazen" violations won't be tolerated

Cryptocurrency firm Terraform Labs and its founder Do Kwon have agreed to pay a staggering multi-billion dollar fine to settle a fraud case filed by the U.S. Securities and Exchange Commission (SEC) in relation to wipeout of billions from the crypto market when the Terra-Luna stablecoin empire collapsed in 2022.