Civil case
SEC v. Terraform Labs PTE Ltd. and Do Hyeong Kwon
- Authority
- US District Court for the Southern District of New York
- Case number
- 23-cv-1346 (JSR)
- Filed or opened
- February 2023
- Organization
- Terraform Labs PTE Ltd
- Current stage
- Jury verdict of liability on 5 April 2024, resolved by consent judgment entered on 12 June 2024.
- Outcome
- Settled. Terraform and Kwon agreed to pay more than US$4.5 billionS2.
Decisions and steps
Claims this case bears on
- Supported94The US Securities and Exchange Commission said that on 5 April 2024 a New York jury found Terraform Labs and Do Kwon liable for defrauding investors in crypto asset securities.Regulator statement, 5 April 20243 records citedFraud
- Contradicted92In October 2023 Terraform Labs and Do Kwon told the court that the SEC had not proven the defendants did anything wrong.Press report, 30 October 20233 records citedFraud
Sources
- S1Tier A Statement on Jury's Verdict in Trial of Terraform Labs PTE Ltd. and Do KwonUS Securities and Exchange Commission (Gurbir S. Grewal, Division of Enforcement). Regulator press release. 5 April 2024.Supports the civil jury verdict of liability for fraud. It is a statement on a civil verdict, not a criminal conviction.
- S2Tier A Terraform and Kwon to Pay $4.5 Billion Following Fraud VerdictUS Securities and Exchange Commission. Regulator press release. 13 June 2024.Supports the settlement figures and repeats the jury finding. The settlement resolves the civil case.
- S9Tier A SEC v. Terraform Labs PTE, Ltd. and Do Hyeong Kwon, No. 23-cv-1346-JSR (S.D.N.Y.)US Securities and Exchange Commission. Regulator press release. 18 September 2025.SEC distributions page. Supports the case number, the 12 June 2024 consent judgment and the 20 September 2024 Chapter 11 plan approval. Says payments run through the bankruptcy estate.