In this lawsuit, Terraform Labs is contesting the SEC’s massive $5.3 billion fine.
Bloomberg reports that Terraform Labs and its founder, Do Kwon, contested the SEC’s proposed massive fine of $5.3 billion in court. The corporation asked the court to reduce the punishment to $1 million, stating that the majority of its stablecoins were sold abroad.
Do Kwon was found guilty by a jury on April 5 for the failure of Terraform, which caused a severe crypto winter and the loss of $40 billion in investor assets. Despite the conviction of Kwon and Terraform for fraud involving the sales of TerraUSD (UST), Luna (LUNA), and wLUNA, the authorities were seeking almost $4.7 billion in disgorgement and prejudgment interest from them. The SEC also levied civil penalties of $520 million.
The court was asked by Terraform to deny “any injunctive remedy of disgorgement,” as the company claimed that the regulators had not shown that Terraform deserved the financial penalties and sweeping injunction that they were seeking. Moreover, the platform said that the Luna Foundation Guard (LFG), which is not a party to the civil action, would need to be contacted in order to acquire the recommended penalties. This is what the court document said: “.
“In summary, the court should avoid awarding injunctive relief or disgorgement, and instead impose a civil penalty of no more than $1 million against TFL.”
A document made by Judge Jed Rakoff of the US District Court for the Southern District of New York on April 29th said that the suggested remedies are to be discussed by the attorneys for Terraform Labs, the SEC, and Kwon in court on May 22nd.
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