U.S. District Court Judge Jed Rakoff of New York has approved the $4.50 billion settlement reached by Terraform Labs and its founder Do Kwon with the Securities Exchange Commission (SEC). Under the agreement, Terraform and Kwon will pay a total of $4.47 billion in fines and penalties and be essentially barred from the crypto industry. Among them, Terraform will pay a forfeiture penalty of $3.60 billion, a civil penalty of $420 million, and nearly $467 million in pre-judgment interest. Kwon is currently in custody in Montenegro after spending four months in jail for trying to leave the country using a fake passport. A court in Montenegro is deciding on competing extradition requests from the United States and South Korea, where he faces criminal charges.