Terraform Labs faces repercussions for the $40 billion TerraUSD crash, agreeing to pay $4.5 billion and cease operations following failed stabilizing measures and securities fraud allegations.
Terraform Labs falsely claimed TerraUSD as a stablecoin, a value proposition that crumbled when it plummeted from $1 to nine cents, highlighting the risks of unstable protocols in the crypto sphere.
Do Kwon, a founder of Terraform Labs, faced legal troubles post-TerraUSD debacle, including arrest in Montenegro and a securities fraud case in the US.
US authorities secured a settlement with Terraform Labs, involving a significant total payout of $4.5 billion, comprising disgorgement, prejudgment interest, and a civil penalty.
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