Terraform to Pay $4.47 Billion to Settle SEC Fraud Case

Deal includes $204.3 million payment by founder Do Kwon
Terraform, Kwon found liable for fraud in April civil trial

The US Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Tierney L. Cross/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Chris Dolmetsch and Bob Van Voris

June 12, 2024 at 4:56 PM UTC

Updated on

June 12, 2024 at 5:57 PM UTC

This article is for subscribers only.

Terraform Labs Pte. will pay $4.47 billion to resolve a US Securities and Exchange Commission lawsuit over the firm’s 2022 collapse, which wiped out $40 billion in investor assets and shook the cryptocurrency world.

The SEC on Wednesday asked a federal judge in New York to approve the settlement. The deal was reached after a jury in April found Terrform and co-founder Do Kwon liable for fraud following a two-week civil trial. Kwon still faces a criminal case over the sale of the firm’s UST stablecoin.