Terraform Labs Settles SEC Case for $4.47 Billion
Terraform Labs recently agreed to settle a $4.47 billion lawsuit filed against it by the US Securities and Exchange Commission (SEC) which is a significant turning point in the regulation of digital cryptocurrencies.
The accused confessed to misleading investors that their digital assets would be stable and secure.
This case involved the algorithmic stablecoin TerraUSD in particular. The financial losses of the coin’s considerable drop in value significantly jeopardized investors.
In a notable deal in SEC history, the regulatory agency stood firm on its pledge to uphold the securities laws in the cryptocurrency market.
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Per the court records,
“Starting from April 2018 to May 2022, Terraform and Kwon offered and sold non-registered crypto asset securities and implemented a fraudulent scheme which led to a loss of at least $40 billion in market value, affecting US retail and institutional investors severely.”
This case is a concrete example of the mounting regulatory pressures that are being imposed on crypto companies to ensure that they are transparent and compliant with financial regulations.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
