A US district judge has given final approval to the $4.5 billion settlement between Terraform Labs, its co-founder Do Kwon and the SEC.
The decision, signed by New York District Court Judge Jed Rakoff on June 13, will force Terra and Kwon to pay billions in fines and penalties to the SEC and effectively bans them from participating in the cryptocurrency industry.
The terms of the settlement include the payment of $3.6 billion in disgorgement, a $420 million civil penalty and approximately $467 million in prejudgement interest from Terraform.
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In addition, Kwon will pay $110 million in disgorgement, $14.3 million in prejudgment interest and $80 million in civil penalties jointly with Terraform.
This settlement comes after Terraform's crypto ecosystem collapsed back in May 2022.