Regulation
Do Kwon, Terra Reach Settlement With SEC; LUNA Price Jumps 20%
Terraform Labs, the startup led by Do Kwon and responsible for the collapsed LUNA cryptocurrency and TerraUSD (UST) stablecoin, has agreed in principle to settle with the United States Securities and Exchange Commission (SEC) over fraud charges. News of the tentative settlement was first reported by Reuters. The court listing indicates that all parties have informed the court of an agreement, with filings due by June 12.
Terraform Labs and its CEO, Do Kwon, have tentatively settled with the U.S. Securities and Exchange Commission (SEC) over fraud charges. This agreement follows a jury’s verdict in April, where Kwon and his company were found liable for deceiving investors about their cryptocurrency products. As part of the settlement, specifics on penalties and restrictions on Kwon’s future financial activities are expected, with official filings due by June 12.
Terraform Labs Reaches Settlement with SEC
The legal challenges for Kwon and Terraform Labs partially ended with the recent settlement announcement. Previously, the SEC had pushed for substantial civil penalties against the duo, alongside a possible permanent ban from the securities industry. This settlement likely includes financial reparations, reflecting the severe nature of the charges. Details remain under wraps until the June filings, but they will crucially determine the financial burden on Kwon and Terraform Labs.
Furthermore, this settlement does not end Kwon’s legal woes. He still faces charges from the U.S. Department of Justice (DOJ) and South Korean authorities, each alleging various financial crimes. The complexity of these charges highlights the broader legal strategy against Kwon’s operations, which have been under scrutiny since the dramatic collapse of his cryptocurrency empire last year.
Following the announcement of the settlement, LUNA‘s market price surged by 20%, a positive response from investors buoyed by the resolution of some uncertainty. This price increase is a direct consequence of reduced investor anxiety, reflecting renewed confidence in the asset’s stability.
Moreover, this uptick is not just a momentary gain; it suggests a possible stabilization of LUNA’s market position. Terra Luna community awaits further developments, particularly Kwon’s remaining legal battles and their implications for Terraform Labs’ operations. The outcome of these cases will undoubtedly influence investor sentiment further and could dictate LUNA’s trajectory in the coming months.
Do Kwon Extradition Struggle Continues Post Settlement
Despite this settlement, Do Kwon’s legal troubles are far from over. He remains embroiled in a complicated extradition battle involving the U.S. and South Korea. Both countries have shown keen interest in prosecuting Kwon after his arrest in Montenegro for possessing a false passport.
This ongoing tug-of-war has seen multiple extradition requests being approved and overturned, complicating Kwon’s legal situation. Kwon was temporarily released from a Montenegrin prison in March, yet he had to stay in the country until his extradition issues were resolved.
Also Read: Donald Trump, Elon Musk Engage on Possible Crypto Policies Ahead of November Elections
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: