Terraform Labs agreed to pay $4.47 billion in fines after reaching a settlement with the U.S. Securities and Exchange Commission over its algorithmic stablecoin that fell dramatically in 2022.

The SEC filed a "proposed final consent judgment" on Wednesday, asking Judge Jed Rakoff of the U.S. District Court for the Southern District of New York to approve the plan.

"The proposed consent judgment both addresses the magnitude of this fraud by imposing significant remedial, punitive, and deterrent remedies, including a multi-billion dollar judgment against Defendants, and provides for meaningful and speedy recovery for investor victims that collectively lost billions when Defendants’ scheme collapsed," the SEC said in a court filing.

"If approved, the proposed judgment will send an …