According to a recent report,it is that Terraform labs and the sec (us security and exchange commission),has reached a settlement,following the illegal activity of fraud charges that was pressed against Terraform labs and its ceo (Do Kwon).
Source
Back in 2022,the TerraformUSD (UST) stablecoin experience a collapse,this affect the company immensely by running into huge loss.
Sec,who has allegedly accused Terraform lab of deceiving investors of the durability of their stablecoin had to file a law suit against (Don kwon),the ceo of Terraform labs in march 2023,it said that,due to Terraform labs illegal actions,investor estimated loss was about $40 billion,which is quite huge amount of loss,I am sure most investors who invested their hard earn money into the coin so worried how the lost money will be recovered.
Having experienced huge failure with the TerraformUSD,Terraform labs appeal over the fine that has to be pay,$3.5 million for Terraform labs and $1 million for terraUSD creator Don kwon,I really felt like they should pay more tough,giving the immense loss of investment by the investors.
Sec seems to have come to a agreeable settlement with the Terraform labs,the terms and conditions were not made public but I really hope it a good terms,particularly in favour of the investors who experienced the loss,by taking the right measure against this act,its going to prevent other investors to fall into similar trap of deceit.
My advise for crypto investors is about making their research before investing and check the track records of every coin,they invest into.
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