Following a court decision that found Terraform Labs and its founder Do Kwon guilty of misleading investors, the SEC seeks $4.7 billion in civil penalties. This was after the ruling that occurred on the 19th of April in the United States District Court for the Southern District of New York.
Furthermore, the SEC demands a court order preventing Kwon from ever holding a position in a business related to securities as a CEO.This comes in after a jury had accused Terraform Labs and Kwon of providing false information to investors which included the TerraUSD (UST), Luna (LUNA), and wrapped Luna (wLUNA) tokens.
The SEC submits the reproach of the offence, which shows that both Kwon and Terraform Labs failed to show any remorse as well as there are no grounds to believe that they won’t repeat the offence.
Do Kwon, the executive of Terra-form Labs, is currently in detention in Montenegro, and now holds both America and South Korea’s extradition requests.
The Terra USD downfall which took place in May 2022 led to billions of losses of investors.
Also Read: SEC Lawyers Resign After Neglecting Duties in Crypto Case
