The SEC submitted for approval to the New York federal court supporting documents confirming the achievement of a settlement agreement in a civil lawsuit between the SEC, Terraform Labs and its co-founder Do Kwon.

Yesterday, June 12, the US Securities and Exchange Commission (SEC) asked New York District Judge Jed Rakoff to approve a “final consent decree” against Terraform Labs and its co-founder Do Kwon. .

“To resolve the civil action, Terraform Labs and Do Kwon agree to provide the SEC with all relief it sought from the court. Specifically, Kwon and Terraform Labs agree to charges of violating federal securities laws and will pay fines and other monetary obligations in accordance with the terms of the settlement. This ruling will ensure maximum recovery for affected investors and put Terraform Labs and Do Kwon out of business permanently,” the SEC said in its letter.

The total amount of punitive damages against Terraform Labs and Do Kwon exceeds $4.47 billion. If Terraform Labs and Do Kwon fulfill all obligations, this compensation for damages will be the largest settlement in a digital asset fraud case, exceeding the November agreement of the Binance exchange with the Ministry US Justice in the amount of $4.3 billion.