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Terraform Labs agreed to pay a bigger penalty than the fine the US Justice Department levied on crypto exchange Binance.Â
According to court filings on Wednesday, Terraform Labs reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) related to the implosion of TerraLuna (LUNC) and TerraUSD (UST).
The proposed penalty submitted by SEC prosecutors followed a two-week trial in March and a preliminary deal disclosed late last month. A jury determined that both Terraform and its founder, Do Kwon, were legally responsible for the companyâs crash in 2022.Â
The settlement is subject to approval from a New York judge and could be one of the largest settlements between a crypto entity and a U.S. regulator. The SEC initially sought $5.3 billion in fines from both parties.
Federal prosecutors initially argued for $4.7 billion in disgorgement, accompanied by a combined $520 million in civil penalties from the firm and Kwon.
Do Kwon is also awaiting extradition in the Balkans, pending approval for his removal to either the U.S. or his home nation, South Korea.
Kwonâs sentence for travel paper fraud expired in March, and the fugitive was released on home arrest from SpuĆŸ prison in Montenegro.Â
The one-time crypto mogul was previously on the run, after Terraâs $60 billion collapse reverberated through the digital asset industry and unleashed cascading bankruptcies on several entities.
Extradition to America or South Korea was approved on several occasions. However, the decisions were overturned in a continued back-and-forth between attorneys and Montenegroâs judicial system.Â
At press time, Kwonâs extradition destination is yet unknown but the former crypto-billionaire could face long years in prison over his role in Terraâs tumble.
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