Terraform Labs and Do Kwon have reportedly agreed to settle their case with the United States Securities and Exchange Commission (SEC), new court documents revealed Thursday.

According to court records, an oral argument between Do Kwon and Terraform Labs and the SEC scheduled on May 29 was cancelled “because the parties have informed the Court that they reached a settlement in principle.”

Both parties have until June 12 to submit papers which would effectively finalize the agreement.

If approved, the settlement marks the end of a dramatic legal saga between the federal regulator and Kwon and his company.

News of the settlement comes just one month after Kwon was found liable for decimating $40 billion from cryptocurrency markets thanks to the Terra ecosystem collapse in May 2022.

“We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” SEC Chair Gary Gensler said in a February 2023 statement. “We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.”

Reuters was first to report the news.

Editorial note: This story is currently being added to. For the full story check back soon as we add more information and/or perspectives from those involved.

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