The US SEC Assists Terraform Labs Victims
By Vukan Ljubojevic | TH3FUS3 Senior Writer
August 1, 2024 07:31 AM
Reading time: 1 minute, 46 seconds
TL;DR The SEC is providing vital information for victims of Terraform Labs' collapse. This comes after the company agreed to pay $4.5 billion in a settlement. Do Kwon faces extradition from Montenegro, although he's been released from jail and is awaiting a Supreme Court decision.
SEC Provides Updated Info On Terraform Labs Compensation Claims
The U.S. Securities and Exchange Commission (SEC) said it will assist the victims of the Terraform Labs collapse in submitting their claim for reimbursement.
According to a post on the SEC's website, the updated guidance is packed with information intended to help answer those questions and contact information for questions related to the distribution process, which will be handled through Terraform's bankruptcy case.
The helpful legal instructions come amid investors contacting the federal regulator about their ability to receive compensation after the outcome of the Commission's action against Terraform in June of this year.
As part of its settlement deal with the SEC over its civil fraud case stemming from its dramatic algorithmic stablecoin collapse a few years back, Terraform Labs has agreed to pay almost $4.5 billion.
Lawyers for the SEC argued that the decided financial judgment would send an unmistakable deterrent message to not only those who engage in brazen misconduct but also to all those who seek to evade federal securities laws by crafting new standards of behavior for crypto assets.
While U.S. lawyers had initially requested a penalty of $5.3 billion against the company, Terraform Labs had proposed merely $1 million in fines.
Do Kwon In Legal Hot Water For TerraLuna Collapse, Facing Extradition
In April, the now-debunked cryptocurrency exchange and Kwon were found liable for the cryptocurrency collapse, which erased an estimated $40 billion from digital asset markets.
Kwon fled his native South Korea shortly following his crypto firm's implosion, prompting a monthslong search for the sham crypto tycoon around parts of Europe, Asia, and the Middle East before he was ultimately captured in Montenegro for document forgery.
Though his Montenegrin prison time is complete, Kwon will remain in jail until he decides where he will be extradited to face criminal charges related to the crypto fraud scheme. The United States and South Korea are currently battling for his extradition.
However, the Terraform Labs founder is reportedly looking to be sent back to his home country, where he will likely face less criminal punishment.
It's unclear what criminal charges the crypto fraudster will face.
