The Wall Street Journal (WSJ) reported on June 12 that Terraform Labs CEO Kwon Do Hyung agreed to pay the U.S. Securities and Exchange Commission (SEC) $4.47 billion in disgorgement and penalties related to the Terra Luna crash.
The SEC announced that the legal representatives of both parties agreed on the number of penalties and other charges in the civil lawsuit against Terraform Labs and Kwon. The final agreed amount is less than the initial $5.26 billion demanded by the SEC.
In November 2021, the SEC filed a civil lawsuit against Kwon and Terraform Labs, accusing them of deceiving investors about Terra’s stability and causing significant investment losses.
U.S. authorities are also pursuing a criminal trial against him. In 2023, the New York prosecutor’s office indicted Kwon on eight charges, including securities fraud. They are requesting his extradition from Montenegro, where he is being held.
South Korea is also requesting his extradition, and it is of great interest to know where he will be extradited to.