The Securities and Exchange Commission (SEC) said that Terraform Labs and its former CEO Do Kwon have agreed to pay around $4.5 billion as part of a massive settlement agreement, according to The company and individual behind the $40 billion collapse of UST and LUNA in 2022 were As part of the agreement, Kwon and Terraform Labs would pay $4.5 billion back in ill-gotten gains (plus interest), alongside a $420 million civil penalty. They will also be prohibited from “engaging in crypto asset securities transactions” moving forward.The once-bombastic crypto entrepreneur—who is currently Kwon will personally pay monetary relief totaling $204 million, according to the agreement, which the SEC said would “send an unmistakable deterrent message.” The amount represents “nearly all the relief it sought against Kwon” for his misconduct, the agency noted.Funds would be transferred from Kwon to Terraform Labs’ bankruptcy estate under the agreement, which still needs to be approved by Judge Jed Rakoff of the U.S. District Court Southern District of New York.When UST and LUNA collapsed in 2022, it sparked Kwon was arrested in Montenegro late last year while trying to travel using a falsified passport. Amid an ongoing tug-of-war, a final determination has yet to be reached in Montenegro as to where the fallen mogul could potentially be sent next to face criminal charges.The former Terra Labs head has been charged with fraud by the U.S. Department of Justice over Terra’s collapse. In South Korea, he’s been separately accused of financial crimes, such as fraud, bribery, and manipulating transaction volume, in addition to violating capital markets laws.The fallen crypto mogul was Edited by Ryan Ozawa.
