Terraform Labs, Do Kwon Reach Preliminary Settlement With SEC

Singapore-based Terraform Labs and its founder Do Kwon have reportedly reached a preliminary settlement with the U.S. Securities and Exchange Commission (SEC) after being accused of misleading cryptocurrency investors before the 2022 collapse of terrausd (UST), the project’s now-defunct algorithmic stablecoin. According to a court filing, the settlement terms are currently undisclosed and the alleged deal faces the chance of not falling through. Earlier, a jury found Kwon and Terraform liable for civil fraud, with accusations including false claims about terrausd’s (UST) stability and its integration with a Korean mobile payment app called Chai.