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Terraform, Do Kwon to reach fraud settlement with SEC

Terraform Labs and CEO Do Kwon are finalizing a settlement with the SEC. Both parties are expected to submit the final terms for court approval by mid-June.

Terraform Labs and its CEO Do Kwon have agreed in principle to settle a fraud case with the U.S. Securities and Exchange Commission (SEC), according to court filings. 

The lawyers representing both parties disclosed a settlement in principle in a telephone conference held before Judge Jed S. Rakoff on May 29. The settlement terms are expected to be finalized and submitted for court approval by June 12, 2024.

Terraform and Kwon were found liable for defrauding investors in its civil case with the SEC in February. The parties were scheduled to discuss remedies in the case on May 29.

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Do Kwon’s extradition to go back to Montenegro High Court after appeal

Since his arrest in March 2023, Do Kwon has been in Montenegro. He could be extradited to either his native South Korea or the United States to face fraud charges.

After another successful appeal from Do Kwon's legal team, Montenegro’s High Court will decide whether to extradite the Terraform Labs co-founder to the United States or South Korea.

According to a May 24 report from Montenegrin news outlet Vijesti, the country’s court of appeals accepted arguments from Kwon’s lawyers and returned the question of extradition to the High Court “for retrial and decision.” The appeal marked the latest legal maneuver Kwon’s team used to delay his transfer to the U.S. or South Korea, where he would face criminal charges.

“If the person whose extradition is sought gives his consent to extradition, it is a shortened procedure that has to be applied and in which case the court decides on extradition,” Montenegro’s court of appeals reportedly said in its decision, adding:

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Montenegro Court Blocks Do Kwon’s Extradition to South Korea

Montenegro Court Blocks Do Kwon’s Extradition to South KoreaA Montenegro appeals court has reversed an order to extradite Do Kwon, the cryptocurrency entrepreneur behind Terraform Labs, to South Korea. Kwon is wanted for his alleged role in the company’s collapse, which caused a $40 billion loss and impacted global crypto markets. Both South Korea and the U.S. have sought his extradition on fraud […]

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US Court to hear proposed remedies from Terraform Labs, Do Kwon in May

The SEC proposed that Do Kwon and Terraform pay roughly $5.3 billion in disgorgement, prejudgment interest and civil penalties, while the firm’s team suggested only $1 million.

After a jury found Terraform Labs and co-founder Do Kwon liable for fraud in a case with the United States Securities and Exchange Commission (SEC), a federal judge ordered the parties to discuss proposed remedies ranging from millions to billions of dollars.

In an April 29 filing in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff said lawyers representing the SEC, Kwon and Terraform should appear in court on May 22 to present arguments for proposed remedies after the jury verdict. All parties have already submitted filings on their respective requests for disgorgement and civil penalties, but Judge Rakoff’s order allowed supplements before the court appearance.

Related: Do Kwon appeals Montenegrin court decision, claiming ‘unfounded and illegal’ interpretation

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SEC Seeks $5.3 Billion in Final Judgment Against Do Kwon and Terraform Labs

SEC Seeks .3 Billion in Final Judgment Against Do Kwon and Terraform LabsThe U.S. Securities and Exchange Commission (SEC) has asked the court to order Terraform Labs and Do Kwon to pay around $5.3 billion as part of the final judgment against the two defendants. This sum includes $4,192,147,847 in disgorgement and $545,748,909 in prejudgment interest. SEC Seeks Final Judgment Against Terraform Labs and Do Kwon The […]

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SEC Looking for $5,300,000,000 Penalty Against Terra-Founder Do Kwon, Alleging ‘Brazen Misconduct’: Report

SEC Looking for ,300,000,000 Penalty Against Terra-Founder Do Kwon, Alleging ‘Brazen Misconduct’: Report

The U.S. Securities and Exchange Commission (SEC) is reportedly looking to hit the disgraced founder of the Terra ecosystem with a multibillion-dollar fine. According to a new report by Bloomberg, the regulatory agency is seeking a $5.3 billion fine against Do Kwon for his role in the downfall of the Terra ecosystem in 2022, alleging […]

The post SEC Looking for $5,300,000,000 Penalty Against Terra-Founder Do Kwon, Alleging ‘Brazen Misconduct’: Report appeared first on The Daily Hodl.

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Do Kwon appeals Montenegrin court decision, claiming ‘unfounded and illegal’ interpretation

The question of the Terraform co-founder’s extradition to either the U.S. or South Korea has been bouncing between lower and higher courts in Montenegro for months.

Terraform Labs co-founder Do Kwon’s legal saga continues with reports of his lawyers filing an appeal against a high court decision that pthe question of his extradition to the United States or South Korea to Montenegro’s justice minister.

According to an April 23 report from Montenegrin news outlet Vijesti, Kwon’s legal team filed an appeal against an April 8 decision from the High Court in Podgorica, which would have allowed Justice Minister Andrej Milović to decide on the Terraform co-founder’s extradition. That high court decision came in response to Montenegro’s Supreme Court approving a request for a protection of legality after a lower court ruled Kwon could be extradited to South Korea.

Kwon’s lawyers reportedly called the high court decision “unfounded and illegal” and a “bizarre” interpretation of the law. It’s unclear if the appeal will stay the question of Kwon’s extradition, which has been bouncing between lower and higher courts for months as his legal team files motions and appeals regarding procedure.

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SEC seeks $5.3B judgment against Terraform Labs and Do Kwon

After a jury found Terraform Labs and Do Kwon liable for fraud in its case with the SEC, the commission filed a motion requesting $5.3 billion in disgorgement and civil penalties.

The United States Securities and Exchange Commission (SEC) has filed a motion requesting billions of dollars in disgorgement and civil penalties against Terraform Labs and its co-founder Do Kwon following a verdict in its civil case.

In an April 19 filing in U.S. District Court for the Southern District of New York, the SEC requested Kwon and Terraform pay roughly $4.7 billion in disgorgement and prejudgment interest after the civil case ruling, as well as a combined $520 million in civil penalties — $420 million from Terraform and $100 million from Kwon. The commission, Terraform and Kwon filed their briefs for potential remedies in the civil case simultaneously, with the crypto firm suggesting a maximum civil penalty of $3.5 million and Kwon proposing only $800,000.

In addition to the monetary judgment, the SEC proposed barring Kwon from serving as an officer or director of a securities issuer and providing complete details of his accounts and assets. If approved, Terraform would also have a “conduct-based injunction” imposed on the firm to prevent “engaging in essentially the same behavior that led to the massive fraud.” The proposed remedies and civil judgment have yet to be ruled on by a judge. 

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Jury Finds Do Kwon and Terraform Labs Liable for Defrauding Investors in Crypto Asset Securities

Jury Finds Do Kwon and Terraform Labs Liable for Defrauding Investors in Crypto Asset Securities

A federal trial court jury has found collapsed crypto company Terraform Labs and its founder Do Kwon liable in the fraud charges brought by the U.S. Securities and Exchange Commission (SEC) in February last year. According to the SEC, Kwon and his firm offered and sold crypto asset securities and carried out a fraudulent scheme […]

The post Jury Finds Do Kwon and Terraform Labs Liable for Defrauding Investors in Crypto Asset Securities appeared first on The Daily Hodl.

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Ex-Terraform Labs CEO Do Kwon’s Extradition Case Reset

Ex-Terraform Labs CEO Do Kwon’s Extradition Case ResetIn the latest Montenegro Supreme State Prosecutor’s Office’s announcement, the legal proceedings concerning the extradition of Terraform Labs’ former CEO, Do Kwon, will revert to the first trial court. On April 3, 2024, a confidential meeting and vote resulted in the annulment of earlier judgments made by both the Podgorica Higher Court and the Court […]

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