LUNC & LUNA Face Critical Turning Point as Do Kwon Considers Guilty Plea
U.S. Government & SEC Actions
In February 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Terraform Labs and its co-founder, Do Kwon, alleging securities and fraud violations. The case centered on misleading statements regarding products such as TerraUSD (UST) and LUNA.
In April 2024, a U.S. jury found both Terraform Labs and Do Kwon liable for defrauding investors.
Terraform Labs and Kwon agreed to a settlement valued between $4.47 and $4.55 billion, covering disgorgement, civil penalties, and contributions to the bankruptcy estate.
Latest Development
On August 11, 2025, a New York court scheduled a hearing indicating that Do Kwon may change his plea to guilty, reversing his earlier not guilty plea.
