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Terraform Labs has reached a settlement with the SEC requiring it to pay approximately $4.47 billion.

This payment includes approximately $3.6 billion in disgorgement penalties, a $420 million civil penalty and nearly $467 million pre-judgment interest fines.

The settlement follows a jury verdict that found Terraform Labs and its co-founder responsible for the collapse of the Terra ecosystem, which resulted in a loss of $40 billion in investor assets.

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As part of the settlement, former Terraform Labs CEO Do Kwon is required to pay $110 million in fines, $80 million in civil penalties and approximately $14.3 million in pre-judgment interest fines.

The settlement request outlines the immediate and short-term next steps to be taken:

"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."

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