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Terraform Labs and Do Kwon Legal Battle
Lawyers for Terraform Labs and its founder, Do Kwon, are advocating for a reduced fine in the legal battle against the United States Securities and Exchange Commission (SEC). The SEC had initially proposed a significant fine following allegations of fraud related to the Terra-Luna crash in early April.
Pushing for a Lower Fine
Thursday’s court filing revealed that Terraform Labs and Do Kwon are contesting the SEC’s proposed fine of $5.3 billion. Instead, they are urging for a fine of $1 million. The SEC had requested a $4.7 billion disgorgement and additional penalties totaling $520 million for their involvement in the Terra-Luna collapse.
Arguments from Kwon and Terraform Labs
Legal representatives for Kwon and Terraform Labs stated that the court should consider imposing a maximum civil penalty of $1 million against the blockchain platform. They argued that the SEC had not provided sufficient evidence to warrant the extensive injunction and monetary sanctions sought against TFL.
SEC’s Pursuit of Kwon
The SEC’s case against Kwon stems from the collapse of TerraUSD and Luna, which resulted in a significant loss in the crypto market. Kwon, who was found liable in a jury trial, was absent during the trial as he was reportedly in Montenegro using a fraudulent passport to evade consequences.
Legal Battle Continues
As the legal battle unfolds, Kwon’s fate remains uncertain as extradition efforts are underway between the U.S. and South Korea. The SEC’s recent aggressive fines on crypto companies, such as Ripple Labs and Binance, highlight the increasing scrutiny on the industry.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
