Outcome at a glance
A jury found Terraform and Kwon liable for securities fraud. A subsequent consent judgment imposed financial remedies and injunctions. Settlement did not erase the verdict. [1–2]
Allegations & issues
The SEC alleged securities fraud and unregistered offerings involving Terraform’s crypto assets. [2]
Key rulings & findings
The court ruled on unregistered offerings in December 2023; the jury found fraud liability on 5 April 2024. [1, opening recitals; 2]
Admissions
Liability was adjudicated. Agreement to remedies should not be described as a settlement without any finding of wrongdoing. [1]
Disposition
Final consent judgment approved on 12 June 2024; the defendants waived appeal from that judgment. [1, opening recitals; 3]
Penalties, damages & redress
Terraform: approximately $3.587 billion disgorgement, $467 million interest and $420 million civil penalty. Kwon: $110 million disgorgement and $14.32 million interest jointly with Terraform, plus an $80 million penalty. Joint amounts must not be counted twice. [2]
Restrictions & obligations
Permanent securities-law injunctions; Terraform agreed to stop selling its crypto asset securities and wind down. [2]
THE UNDERLYING RECORD
Primary sources
Read the full documents for their precise wording and context. Regulator summaries are identified separately from court records.
Court record · sec.gov01 · Court · Final judgment, opening recitals and remedies ↗Regulator / agency publication · sec.gov02 · SEC · Verdict and remedies announcement, 13 June 2024 ↗Regulator / agency publication · sec.gov03 · SEC · Civil judgment and investor distribution information ↗