Securities and Exchange Commission v. Terraform Labs Pte Ltd. et al
| New York Southern District Court | |
| Judge: | Jed S Rakoff |
| Case #: | 1:23-cv-01346 |
| Nature of Suit | 850 Other Statutes - Securities/Commodities/Exchange |
| Cause | 12:22 Securities Fraud |
| Case Filed: | Feb 16, 2023 |
| Terminated: | Jun 12, 2024 |
| Last checked: Tuesday Aug 15, 2023 5:06 AM EDT |
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Amicus
Paradigm Operations LP
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Represented By
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Defendant
Do Hyeong Kwon
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Represented By
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Defendant
Terraform Labs Pte Ltd.
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Represented By
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Plaintiff
Securities and Exchange Commission
100 F Street, NE
Washington DC, DC 20549 |
Represented By
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| Docket last updated: 10 hours ago |
| Wednesday, June 12, 2024 | ||
| 273 | 273
11
pgs
order
Judgment
Thu 06/13 4:54 PM
FINAL JUDGMENT AGAINST DEFENDANTS TERRAFORM LABS PTE LTD. AND DO HYEONG KWON: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendants are permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security: As further set forth in this Order. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Terraform is liable for disgorgement totaling $3,586,875,883, which represents net profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $466,952,423. Of these amounts, Kwon is jointly and severally liable with Terraform in the amount of $110,000,000 of disgorgement, plus prejudgment interest thereon in the amount of $14,320,196. Pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], the Court further imposes a civil penalty on Terraform of $420,000,000. The $4,473,828,306 in total monetary remedies against Terraform shall be payable as provided for in the confirmed Chapter 11 Plan in the Bankruptcy Case, as set forth in the following paragraph. As further set forth in this Order. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Kwon is liable for disgorgement totaling $110,000,000, together with prejudgment interest thereon in the amount of $14,320,196. Pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], the Court further imposes a civil penalty on Kwon of $80,000,000. Kwon shall begin to satisfy these obligations by directly transferring to the bankruptcy estate in the Bankruptcy Case, assets and funds as set forth in the next paragraph herein. Payment of the monetary remedies against Kwon shall be deemed satisfied, provided that all transfers by Kwon to the SEC and the Terraform bankruptcy estate in the Bankruptcy Case total no less than $204,320,196, excluding the value of any Terraform Crypto Assets transferred to the Terraform bankruptcy estate, only if and until Kwon completes: (1) transferring into an escrow account agreed by Kwon and the Commission staff $4,700,000 within 30 days of Final Judgment as set for the above; (2) transferring into an escrow account agreed by Kwon and the Commission staff $2,300,000 of assets belonging to Kwon in accounts at Sygnum Bank of Zurich, Switzerland, associated with Portfolio Number 84.002.088-00, within 30 days of Final Judgment; (3) transferring to the Terraform bankruptcy estate in the Bankruptcy Case within 30 days all crypto assets of the Luna Foundation Guard, which shall first be applied to satisfy the disgorgement amount and prejudgment interest with any remaining assets applied to the civil penalty amount; As further set forth in this Order. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED all parties have knowingly and voluntarily consented to waive the right, if any, to appeal from the entry of this Final Judgment. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (Signed by Judge Jed S. Rakoff on 6/12/2024) (ks) Transmission to Finance Unit (Cashiers) for processing. |
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| 272 | 272
7
pgs
misc
Brief
Wed 06/12 12:47 PM
BRIEF re:271 Proposed Judgment Letter Brief Seeking Approval of Proposed Final Consent Judgment . Document filed by Securities and Exchange Commission..(Carney, Christopher) |
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| 271 | 271
11
pgs
misc
Proposed Judgment
Wed 06/12 12:41 PM
PROPOSED JUDGMENT. Document filed by Securities and Exchange Commission..(Carney, Christopher) |
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Att: 1
11 pgs
Exhibit Consent of Terraform Labs,
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Att: 2
7 pgs
Exhibit Consent of Do Hyeong Kwon
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