Bankrupt Terraform Labs And Founder Do Kwon Reach Historic $4.47B Settlement With The SEC In The UST, LUNA Collapse Case
Portfolio Pulse from Aniket Verma
Terraform Labs and its founder Do Kwon have agreed to a $4.47 billion settlement with the SEC after being found guilty of defrauding cryptocurrency investors during the Terra (LUNA) collapse. The judgment includes $4.05 billion of disgorgement and a $420 million civil fine, but much of this is unlikely to be paid due to Terraform's bankruptcy. Kwon is banned from cryptocurrency transactions and must transfer $204.3 million to Terraform's bankruptcy estate.
June 13, 2024 | 5:46 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Terraform Labs and Do Kwon have agreed to a $4.47 billion settlement with the SEC, but much of this amount is unlikely to be paid due to Terraform's bankruptcy. This could lead to increased volatility in LUNA's price.
The settlement and the bankruptcy status of Terraform Labs are likely to create uncertainty and volatility in LUNA's price. Investors may react negatively to the news, leading to a potential short-term decline.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The settlement between Terraform Labs and the SEC, along with the bankruptcy status, could impact the price of Terra Classic (LUNC). The news may lead to increased volatility and potential short-term price decline.
The legal and financial troubles of Terraform Labs are likely to affect Terra Classic (LUNC) as well. Investors may react negatively, leading to increased volatility and a potential short-term decline in LUNC's price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80