Terraform Labs Settles with the SEC for $4.47 Billion

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Terraform Labs has agreed to settle with the US Securities and Exchange Commission (SEC) for $4.47 billion, marking a significant resolution in the regulatory crackdown on the cryptocurrency industry.

The settlement addresses allegations that Terraform Labs engaged in securities fraud by misleading investors about the stability and security of their digital assets.

Terraform Labs Settles SEC Case for $4.47 Billion

This settlement, one of the largest in SEC history, reflects the regulatory body’s commitment to enforcing securities laws in the crypto market. Terraform Labs, known for its algorithmic stablecoin TerraUSD, faced scrutiny after the coin’s value plummeted, causing significant investor losses.

“From at least April 2018 through May 2022, Terraform and Kwon offered and sold crypto asset securities in unregistered transactions and perpetrated a fraudulent scheme that led to the loss of at least $40 billion of market value, including devastating losses for US retail and institutional investors,” court filings read.

This case highlights the increasing regulatory pressures on cryptocurrency companies to maintain transparency and adhere to financial regulations. It serves as a warning to the industry about the consequences of non-compliance with US securities laws.

The post Terraform Labs Settles with the SEC for $4.47 Billion appeared first on BeInCrypto.

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