Menu

  • Alerts
  • Incidents
  • News
  • APTs
  • Cyber Decoded
  • Cyber Hygiene
  • Cyber Review
  • Cyber Tips
  • Definitions
  • Malware
  • Threat Actors
  • Tutorials

Useful Tools

  • Password generator
  • Report an incident
  • Report to authorities
No Result
View All Result
CTF Hack Havoc
CyberMaterial
  • Education
    • Cyber Decoded
    • Definitions
  • Information
    • Alerts
    • Incidents
    • News
  • Insights
    • Cyber Hygiene
    • Cyber Review
    • Tips
    • Tutorials
  • Support
    • Contact Us
    • Report an incident
  • About
    • About Us
    • Advertise with us
Get Help
Hall of Hacks
  • Education
    • Cyber Decoded
    • Definitions
  • Information
    • Alerts
    • Incidents
    • News
  • Insights
    • Cyber Hygiene
    • Cyber Review
    • Tips
    • Tutorials
  • Support
    • Contact Us
    • Report an incident
  • About
    • About Us
    • Advertise with us
Get Help
No Result
View All Result
Hall of Hacks
CyberMaterial
No Result
View All Result
Home News

Terraform Labs to Pay $4.47B as Settlement

June 12, 2024
Reading Time: 3 mins read
in News
Terraform Labs to Pay $4.47B as Settlement

Terraform Labs, the blockchain company behind the Terra ecosystem, has reached a monumental settlement agreement with the U.S. Securities and Exchange Commission (SEC), totaling $4.47 billion. This settlement, subject to final approval by a federal judge, arises from allegations of investor fraud and the sale of unregistered securities following the collapse of Terra’s algorithmic stablecoin, TerraUSD, in 2022. The collapse resulted in significant losses estimated at $40 billion for investors, marking one of the largest financial setbacks in the crypto industry.

The SEC’s lawsuit, filed in 2023, accused Terraform Labs and its co-founder Do Kwon of misleading investors about the risks associated with TerraUSD and other digital assets. The settlement terms include $3.6 billion in disgorgement fines, $420 million in civil penalties, and nearly $467 million in prejudgment interest. Notably, former CEO Do Kwon faces substantial personal liabilities, including $110 million in disgorgement penalties, $80 million in civil penalties, and $14.3 million in prejudgment interest. These fines underscore the severity of the SEC’s allegations and the financial consequences for those found responsible.

As part of the settlement, Kwon is required to transfer $4.7 million into an agreed escrow account within 30 days of the final judgment. Additionally, all crypto assets held by the Luna Foundation Guard and Pyth Network token holdings under Kwon’s control will be liquidated to cover the financial penalties. The remaining proceeds will contribute towards fulfilling the civil penalty obligations imposed by the SEC, solidifying the terms of the agreement reached between Terraform Labs and the regulatory body.

This settlement marks a significant development in the regulatory landscape of cryptocurrencies, highlighting the SEC’s stance on ensuring transparency and accountability in the digital asset market. It serves as a cautionary tale for blockchain firms and investors alike, emphasizing the importance of compliance with securities laws and the risks associated with unregistered offerings. Moving forward, stakeholders will closely monitor how this case influences regulatory actions and investor confidence within the rapidly evolving crypto ecosystem.

Reference:
  • Terraform Labs to Pay $4.47B as Settlement Over Terra Ecosystem Collapse
Tags: BlockchainCyber NewsCyber News 2024Cyber threatsCybersecurityJune 2024SettlementTerra ecosystemTerraform LabsUSA
ADVERTISEMENT

Related Posts

Securonix Buys ThreatQuotient For AI SecOps

WhatsApp Backs Apple In UK Encryption Case

June 13, 2025
Securonix Buys ThreatQuotient For AI SecOps

New NIST Guide Helps Implement Zero Trust

June 13, 2025
Securonix Buys ThreatQuotient For AI SecOps

Securonix Buys ThreatQuotient For AI SecOps

June 13, 2025
New Bill Aims To Secure US Healthcare Data

New Bill Aims To Secure US Healthcare Data

June 13, 2025
New Bill Aims To Secure US Healthcare Data

Operation Secure Busts Infostealer Ring

June 12, 2025
New Bill Aims To Secure US Healthcare Data

Linux Malware Cloud Attacks Surge 388%

June 12, 2025

Latest Alerts

Old Discord Links Now Lead To Malware

VexTrio TDS Uses Adtech To Spread Malware

Simple Typo Breaks AI Safety Via TokenBreak

Coordinated Brute Force Hits Tomcat Manager

SmartAttack Uses Sound To Steal PC Data

Pentest Tool TeamFiltration Hits Entra ID

Subscribe to our newsletter

    Latest Incidents

    Cyberattack On Brussels Parliament Continues

    Swedish Broadcaster SVT Hit By DDoS

    Major Google Cloud Outage Disrupts Web

    AI Spam Hijacks Official US Vaccine Site

    DragonForce Ransomware Hits Philly Schools

    Erie Insurance Cyberattack Halts Operations

    CyberMaterial Logo
    • About Us
    • Contact Us
    • Jobs
    • Legal and Privacy Policy
    • Site Map

    © 2025 | CyberMaterial | All rights reserved

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • Alerts
    • Incidents
    • News
    • Cyber Decoded
    • Cyber Hygiene
    • Cyber Review
    • Definitions
    • Malware
    • Cyber Tips
    • Tutorials
    • Advanced Persistent Threats
    • Threat Actors
    • Report an incident
    • Password Generator
    • About Us
    • Contact Us
    • Advertise with us

    Copyright © 2025 CyberMaterial