Do Kwon appears to have reached a preliminary settlement with the US Securities and Exchange Commission (SEC).
In April, a jury found Kwon and Terraform Labs liable for defrauding investors regarding the stability of the algorithmic stablecoin Terra USD, which decoupled and collapsed in 2022, sending crypto prices plummeting across the board.
The court docket notes oral arguments regarding Kwon and the company’s fines were originally scheduled for May 29, but were canceled because “the parties informed the court that they have reached a settlement in principle.” Both sides have been ordered to file papers in support of a final judgment by June 12.
In April, the SEC filed a motion requesting that Kwon and Terraform Labs pay more than $4.19 billion in disgorgement, plus $545.7 million in prejudgment interest. The regulator also sought a $100 million civil penalty from Kwon and a $420 million fine from the company.
Kwon was initially arrested by authorities in Montenegro in 2023 after he was caught trying to board a flight to the United Arab Emirates (UAE) with a forged Costa Rican passport.
He is currently awaiting extradition to both the US and South Korea, where he is wanted by authorities for his role in the collapse of the $40 billion Terra ecosystem.
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Generated image: Midjourney