SEC v. Terraform Labs PTE Ltd. and Do Hyeong Kwon (June 12, 2024)
Asset Handling & Destruction (Key Provision – likely ¶87):
• Terraform and Do Kwon must permanently disable access to all wallets and accounts holding Terraform-related crypto assets—including LUNA, wLUNA, UST, MIR, and Luna 2.0.
• They must destroy or cause the destruction of those assets, such as burning tokens to unspendable addresses or eliminating private keys, ensuring no future sales or circulation of hyperinflated post-collapse supplies.
• Applies to LFG reserves as well: reserves must be seized and liquidated for victim compensation, or keys destroyed if distribution isn’t feasible.
• The court keeps full jurisdiction to enforce compliance. Any failure to comply can trigger contempt findings or further penalties.
• The settlement waives appeal rights but does not require explicit admissions, even though liability was already established via verdict/summary judgment.
