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Author: Turner Wright, CoinTelegraph; Compilation: Baishui, Bitchain Vision
The Securities and Exchange Commission (SEC) filed a motion after the civil case decision seeking billions of dollars in illegal proceeds and civil fines for Terraform Labs and its co-founder Do Kwon.
In a document filed on April 19 to the U.S. District Court for the Southern District of New York,The SEC requires Kwon and Terraform to pay approximately $4.7 billion in recovery and pre-judgment interest after the civil case ruling, as well as a total of $520 million in civil fines—Terraform paid $420 million and Kwon paid $100 million.The Commission, Terraform and Kwon simultaneously submitted a briefing on possible remedies in civil cases, with crypto firms deeming a maximum civil fine of $3.5 million, while Kwon only deemed a fine of $800,000.
Source: Courtlistener
In addition to the fine, the SEC also proposes to prohibit Kwon from serving as a senior officer or director of a securities issuer and to prohibit him from providing full details of his accounts and assets.If approved, Terraform will also impose a “conduct-based ban” against the company to prevent “engagement in essentially the same behavior as that which leads to mass fraud.”The proposed remedies and civil judgments have not been ruled by the judge.
“The defendants did not show any regret for their actions, and there is no doubt that their situation is not only possible but may have occurred more illegal acts.” “The court should issue a clearInformation, that is, such shameless misconduct, and the defendant’s false attempt to justify his actions by crafting new rules and standards of crypto markets that violate federal securities laws… are intolerable.”
On April 5, a jury found Terraform and Kwon responsible for defrauding investors in TerraUSD (UST), Luna and wLUNA’s offer and sale statements.A Terraform spokesman said at the time that the company was “calculated to weigh [its] choices and next steps”.
The SEC trial continues with Kwon’s absence, who is currently involved in a court lawsuit in Montenegro.Terraform co-founder Kwon was arrested in March 2023 for using a forged travel document while trying to leave the country.
Despite being later released and allowed to travel within Montenegro, the question of Kwon’s extradition to the United States or South Korea has not been answered at the time of publication.He faces potential criminal charges in both countries.
