On May 22nd, a United States court will listen to arguments as to how much Terraform Labs and its co-founder Do Kwon must pay after the jury concluded that they defrauded investors.
The SEC is seeking $4.7 billion in penalties, plus $520 million in civil penalties. Terraform Labs, on the other hand, is arguing for a significantly smaller $1 million fine and avoiding any further penalties.
According to reports, SEC has available enough evidence to convince the court without a doubt that Terraform Labs had played games with investors on the stability of their crypto coin while also showing reluctance that others were working harder at ensuring the longevity of the crypto market.
The Court’s decision on the hearing on the 22nd of May will cause a multitude of consequences for the whole crypto market. Given that Do Kwon and Terraform Labs have to pay a huge fine, it is obvious that the authorities have a stricter regulation approach towards digital currencies.
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