Terraform Labs, Do Kwon agree to settle SEC civil fraud case

A police officer escorts Terraform Labs co-founder Do Kwon after he served a sentence for document forgery in Podgorica, Montenegro, March 23, 2024. REUTERS/Stevo Vasiljevic/File Photo

(Reuters) -Singapore-based Terraform Labs and its founder Do Kwon have reached a tentative settlement with the U.S. Securities and Exchange Commission which sued them for allegedly misleading cryptocurrency investors before the 2022 collapse of the stablecoin TerraUSD.

The deal but not its terms was disclosed on a court website on Thursday. A jury found Kwon and Terraform Labs liable on civil fraud charges at trial in April.