Terraform Labs has agreed to pay the United States Securities and Exchange Commission (SEC) roughly $4.47 billion as part of its settlement with the securities regulator. The total remedies include disgorgement fines of roughly $3.6 billion, a civil penalty of $420 million, and prejudgement interest of nearly $467 million.
Do Kwon is liable for $110 million in disgorgement penalties and roughly $14.3 million in pre-judgment interest fines in accordance with the settlement plan.
The settlement was reached after a jury found Terraform Labs and its co-founder liable for the Terra ecosystem collapse, which erased $40 billion in investor assets.
The settlement filing read: "Payment of the monetary remedies against Kwon shall be deemed satisfied, provided that all transfers by Kwon to the SEC and the Terraform bankruptcy estate in the Bankruptcy Case total no less than $204,320,196, excluding the value of any Terraform Crypto Assets transferred to the Terraform bankruptcy estate, only if and until Kwon completes: (1) transferring into an escrow account agreed by Kwon and the Commission staff $4,700,000 within 30 days of Final Judgment."