The US securities regulator has reached an agreement with Singapore-based Terraform Labs and its founder Do Kwon more than a year after he was arrested in Montenegro.
Terraform Labs and Do Kwon have reached a tentative settlement with the US Securities and Exchange Commission (SEC), according to a court filing, over allegations of misleading investors before the 2022 collapse of stablecoin TerraUSD. They were also accused of falsely claiming that Terraform's blockchain was used in a popular Korean mobile payment app. The deal was disclosed but not its terms.
Together with sister token Luna, SEC estimates that investors lost over $40 billion when the stablecoin’s peg to the dollar could not be maintained. The fugitive crypto boss has been awaiting extradition from Montenegro where he was arrested in March 2023.
