In a significant development for the cryptocurrency industry, Terraform Labs Pte. and its co-founder, Do Kwon, have reached a “settlement in principle” with the US Securities and Exchange Commission (SEC). This follows a lawsuit stemming from the firm’s 2022 collapse, which resulted in a $40 billion loss for investors and sent ripples through the crypto world.
Last month, a jury in New York found both Kwon and Terraform liable for the meltdown. The parties involved were scheduled to present arguments regarding potential penalties last night; however, this proceeding was canceled. In a court filing on Thursday, US District Judge Jed Rakoff indicated that the hearing was scrapped due to the anticipated resolution.
The full details of the settlement have yet to be disclosed, and further steps in the legal process are expected to follow. Interested readers can find more information on the Bloomberg Law website
here. As this development unfolds, it will undoubtedly have significant implications for regulatory practices and the broader cryptocurrency landscape.