The New York State District Court, presided over by Jed Rakoff, approved the deal between the US Securities and Exchange Commission (SEC) and Terraform Labs. The latter will pay $4.47 billion in fines to settle the case.
Let us recall that as part of this agreement, Terraform Labs will pay $3.6 billion in compensation, a fine of $420 million and interest in the amount of $467 million. Former CEO of the company Do Kwon, who is also a defendant in the SEC lawsuit, must, in turn, reimburse more than $204 million .
A judge signed the agreement and it went into effect, according to court records. The first tranche from Do Kwon to the account selected by the Commission must arrive within 30 days.
Taking this into account, Terraform Labs' fine is the largest in the US corporate environment. Previously, this “achievement” was achieved by the Binance exchange, which settled the case with the American authorities for $4.3 billion. It is noteworthy that in this case the court approved the deal only three months after its announcement.
“This case confirms what has been repeated in the courtroom many times—that the economic realities of a product determine whether it is a security, not the label or advertising,” said SEC Chairman Gary Gensler.
After paying the fine, Terraform Labs will cease operations. The company's products will be sold, and the remaining LUNA tokens will be burned.
