The U.S. SEC still has to queue up behind secured creditors to receive a payment from Terraform Labs’ multibillion-dollar settlement, if any.
The United States Securities and Exchange Commission (SEC) could end up receiving only a small portion of its multibillion-dollar settlement with Terraform Labs.
According to a report by The Wall Street Journal, Terraform had assets worth $430.1 million against liabilities worth $450.9 million in January, when the firm filed for bankruptcy.
Terraform Labs has agreed to pay the securities regulator roughly $4.47 billion as part of a settlement disclosed on June 12. In total, the remedies include disgorgement fines of roughly $3.6 billion, a civil penalty of $420 million and prejudgement interest of nearly $467 million. The settlement is still awaiting court approval.
