Jed Rakoff, a judge in the New York District Court, has approved a $4.5 billion settlement agreement between Terraform Labs, its founder Do Kwon, and the US Securities and Exchange Commission (SEC). Under the agreement, Terraform and Kwon will pay a total of $4.47 billion in fines and penalties and be essentially banned from the cryptocurrency industry. Specifically, Terraform will pay $3.6 billion in forfeiture fines, $420 million in civil fines, and nearly $467 million in pre-judgment interest.

Kwon is currently detained in Montenegro, having been imprisoned for four months for attempting to leave the country with a fake passport. The Montenegrin court is deciding on competing extradition requests from the US and South Korea, where he faces criminal charges.