The SEC announced that Terraform Labs and Do Kwon will pay over $4.5 billion after a jury found them guilty of a prolonged fraud involving crypto asset securities. The fraud caused massive investor losses leading to a $40 billion market value wipeout. The SEC charged Terraform and Kwon with securities fraud in February 2023. The court found them liable in December 2023, and they filed for Chapter 11 bankruptcy in January 2024. The jury's verdict led to the SEC settlement, which includes Terraform winding down its operations and distributing remaining assets to investors, with both defendants permanently enjoined from future violations.