Breaking Crypto News – Terraform Labs and Do Kwon: Unraveling the $4.5B Civil Fraud Case
Breaking Crypto News – As part of a settlement deal with the SEC, Terraform Labs and its former CEO Do Kwon agreed to pay over a total of $4.5 billion in disgorgement and civil penalties. Along with a permanent prohibition on Kwon and Terraform Labs’ ability to purchase and sell crypto asset securities, including all of the tokens in the Terra ecosystem, the settlement agreement was filed on Wednesday.
SEC’s Lawyers Send Letter to the Court
The SEC‘s attorneys sent a letter to the court asking U.S. District Court Judge Jed Rakoff of the Southern District of New York (SDNY), who is presiding over the case, to approve the settlement agreement in addition to their proposed final judgment.
If approved, the proposed judgment will send an unmistakable deterrent message to not only those who engage in brazen misconduct, but also to all those who seek to evade the requirements of the federal securities laws by crafting new standards of behavior for crypto assets that fall under the purview of the federal securities laws,
the lawyers
FAQ
Why Was Do Kwon Arrested?
In relation to the $40 billion cryptocurrency crisis that rocked retail investors worldwide, 32-year-old Kwon was arrested on an international arrest warrant.
What is the Meaning of Settlement Deal?
It is a settlement that puts an end to a disagreement and causes any associated legal action to be voluntarily dropped. Parties frequently decide to keep their settlement agreements confidential, regardless of the specifics.
What is a Civil Penalty?
A civil penalty refers to a non-criminal measure imposed on a party who violates laws or rules. Only civil fines or other monetary payments are typically included in civil penalties as a form of compensation for damages. A civil penalty action may be initiated by the government or, acting on behalf of the government, by a private party.
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