US settles for $4.47bn with now bankrupt crypto firm Terraform Labs

US settles for $4.47bn with now bankrupt crypto firm Terraform Labs

Crypto firm was found liable for defrauding investors who lost nearly $40bn when its tokens collapsed in 2022

Terraform Labs reached a $4.47bn civil settlement with the US Securities and Exchange Commission, after being found liable by a jury for defrauding cryptocurrency investors who lost an estimated $40bn when the TerraUSD and Luna tokens collapsed in 2022, leading to a disastrous downturn that affected the entire crypto industry.

A proposed final judgment covering Terraform and its founder Do Kwon was filed on Wednesday in Manhattan federal court. It requires approval by the US district judge Jed Rakoff, who oversaw the trial, which ended on 5 April.

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