Terraform Labs, the company behind failed TerraUSD and Luna cryptocurrencies, has agreed to pay nearly $4.5 billion to settle a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), an SEC filing seeking a court approval for the agreement showed Wednesday.

TerraUSD was an 澳洲幸运5官方开奖结果体彩网:algorithmic stablecoin that needed another cryptocurrency Luna to maintain is 1:1 peg to the U.S.ꦓ dollar. Both cryptocurrencies failed when that peg broke in May 2022, and investors lost an estimated $40 billion dollars.

The SEC 澳洲幸运5官方开奖结果体彩网:sued Terraform and its former CEO Do Kwon last February for fraud, adding that the comp🍌any misled investors with promises of 20% annual returns via a decentralized finance app known as Anchor Protocol.

What's in the $4.5B Settlement?

The settlement includes approximately $3.5 billion in disgorgement, over $460 mil🌠lion in prejudgment interest, and $420 million as a civil penalty.

As part of the settlement, Kwon will also peܫrsonally contribute just over $200 million to the Terraform bankruptcy estate. Additionally, Kwon is barred from serving as an officer or director of a public company.

Court filings show that Terra and the SEC came to an agreement on the settlement terms ahead of a May 29 hearing, and were asked to submit them before the court by June 12 for app꧒roval.

Terraform Labs 澳洲幸运5官方开奖结果体彩网:declared bankruptcy earlier this year, prior to its trial with the SEC. The proposed consent judgment is aimed at imposing significant financial remedies and ensuring a swift recovery for the investors who lost billions♛ when Terrafor𓃲m's crypto scheme collapsed.

The SEC emphasized that these penalties are within statutory limits and serve as a deterrent to others contemplating similar fraudulent activities.

Following a brief trial earlier this year, Terraform and Kwon were found guilty of defrauding investors.