Terraform, SEC Reach ‘Settlement in Principle’ on Lawsuit (1)

Terraform Labs Pte. and co-founder Do Kwon have reached a “settlement in principle” with the US Securities and Exchange Commission over a lawsuit the regulator filed following the firm’s 2022 collapse, which wiped out $40 billion in investor assets and shook the cryptocurrency world.

A jury in New York last month found Kwon and Terraform liable for the collapse, and the parties had been scheduled to argue potential penalties Wednesday, but the hearing was canceled. In a court filing Thursday, US District Judge Jed Rakoff ordered the parties to file papers in support of a proposed final judgment consistent with ...