Terraform Labs And Do Kwon Push For $1 Million SEC Fine Opposed To $5.8 Billion Demanded After Terra-Luna Crash
Lawyers for Terraform Labs and its founder, Do Kwon, are pushing for a fine of $1 million as opposed to the United States Securities and Exchange Commission (SEC)’s proposed $5.3 billion after the crypto company and its founder were found liable for fraud related-to the Terra-Luna crash in early April.
Thursday’s court filing comes after the SEC requested a $4.7 billion disgorgement and prejudgment fine and a total of $520 million in civil penalties for its role in the Terra-Luna collapse.
JUST IN: DO KWON'S LAWYERS SAY FINE SHOULD BE CLOSER TO $1 MILLION AFTER SEC DEMANDS $5.3 BILLION
— BSCN Headlines (@BSCNheadlines) April 30, 2024
Lawyers representing Kwon and Terraform Labs argued that the court “should impose at most a $1 million civil penalty” against the blockchain platform.
“The SEC has failed to prove that it is entitled to the expansive injunction and monetary sanctions it seeks against TFL,” the filing read.
The SEC originally charged the now disgraced crypto mogul in February 2023 after its algorithmic stablecoins TerraUSD and its sister token Luna crashed in tandem, wiping an estimated $40 billion from the crypto market in spring 2022.
