Terraform Labs agrees to pay a fine of USD $4.47 billion after dispute with the SEC – DiarioBitcoin

So much Terraform Labs and Do Kwon will assume high fines to settle legal disputes with the SEC, funds that will be used to address civil penalties, refunds and the cancellation of interest.

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• Terraform Labs, Do Kwon and the SEC establish conciliation agreement
• The entity will assume fines for a total of USD $4,470 million
• Kwon must pay more than USD $200 million in fines
• The agreement was reached in the absence of Kwon, whose extradition has not yet been decided.

The organization responsible for providing technological and community support to the failed project Terra, Terraform Labsreached an agreement with the US Securities and Exchange Commission (SEC), with which it agrees to pay an estimated USD $4.47 billion as a fine after the inconveniences that led to the collapse of the tokens MOON and UST.

SEC and Terraform Labs establish conciliation plan

Although weeks ago the SEC and Terraform Labs It was reported that a fraud plea agreement was being discussed between both parties, the reports released today constitute the establishment of a settlement plan. With this, the organization and its main director, Do Kwon, undertake to appropriately compensate the affected people, as well as assume the corresponding fines.

In the conciliation plan finalized by both entities, it is established that Kwon must pay a total of USD $204.3 million in fines that include refunds, civil penalties and the cancellation of interest prior to the ruling.

On the side of Terraform Labs, The amount amounts to approximately USD $4.47 billion, which is divided into approximately USD $3.6 billion in refund fines, USD $420 million in civil fines and another USD $467 million in prior interest.

In this regard, the conciliation plan specified by the parties reads:

Payment of monetary settlements against Kwon will be deemed satisfied, provided that all transfers from Kwon to the SEC and Terraform’s bankruptcy estate in the bankruptcy case total no less than $204,320,196, excluding the value of any crypto assets. of Terraform transferred to Terraform’s bankruptcy estate, only if and until Kwon complies with: (1) transfer to an escrow account agreed upon by Kwon and Commission staff $4,700,000 within 30 days of the Final Judgment .

As part of the agreement, it is also established that all crypto assets belonging to Luna Foundation Guard and the holdings of Pyth Network (PYTH) of Kwon would be sold and used for the purposes of the settlement, prioritizing returns and pre-judgment interest.

Do Kwon’s fate

While the case progresses in the US, Kwon is still in Montenegro waiting for the fate of his extradition to be determined.

After many twists and turns throughout the process, the most recent ruling establishes that Kwon’s fate will be decided by the Supreme Court of Montenegro. The entity must analyze all documents, elements and events to determine whether the transfer of the accused to South Korea or to United States territory will be accepted.

Although this has not yet been defined, the process in the US has already ruled that Kwon is guilty of crimes of fraud and many others, so a sentence is only expected while pressure is being put on for him to be extradited to the country. .

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, under free use license

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