Experience the David vs. Goliath battle as Terraform Labs and its fearless leader, Do Kwon, take on the SEC’s outrageous $5.3 billion fine. Unleashing their unwavering determination, they refuse to back down against accusations of fraud and unregistered token sales.
Terraform Lawyers: $1M, Not $5.3B
The Terraform legal squad is fuming over the SEC’s outrageous proposal of a $5.3 billion fine. In a bold move, the team standing up for the company and its visionary founder, Do Kwon, has fired back, declaring that a mere million-dollar penalty would suffice for the alleged offense.
The SEC has unleashed their harshest punishment yet on the crypto world, targeting Do Kwon and Terraform Labs with a record-breaking fine. This bold move serves as a warning to all those involved in deceptive practices, as the recent fraud conviction of these two entities by a New York jury has raised the stakes in the industry.
Lawsuit Charges And Allegations
After a dramatic two-week trial, Terraform Labs and its founder, Kwon, have been found guilty of duping investors and causing a catastrophic collapse in the cryptocurrency market. The devastating effects of the TerraUSD stablecoin’s downfall, which caused a staggering $40 billion in losses, will continue to reverberate throughout the industry for the foreseeable future.
The SEC accused Terraform and Kwon of reaping a whopping $4 billion in “ill-gotten gains” through unregistered token sales, including the popular LUNA and UST.
SEC’s Proposed Fine
The SEC has unleashed a financial storm on the crypto world, proposing a record-breaking fine of $5.3 billion. This thunderous penalty includes a whopping $4.7 billion for disgorgement and prejudgment interest, along with $100 million and $420 million in civil penalties for Kwon and Terraform, respectively.
It’s a clear warning to the industry that US regulators are keeping a watchful eye and will not hesitate to take action against any wrongdoing. In their court filing, the SEC made it crystal clear that they will not stand for such misconduct any longer and are determined to make an example out of these offenders.
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Kwon And Terraform’s Response
The Terraform legal team fought back against the proposed fine with a bold counterargument. They advocated for a reduced penalty of only $1 million, with no restrictions or forfeitures. With deadlines looming on May 6 and May 1, both sides have a limited window to submit additional evidence to support their positions.
Meanwhile, Kwon’s legal team made a compelling case that his actions had minimal impact in the US, as they were primarily carried out overseas in Korea and Singapore.
Upcoming Court Proceedings
Mark your calendars for May 22, as the courtroom will be buzzing with lawyers representing the SEC, Kwon, and Terraform Labs. Judge Jed Rakoff has called for a showdown to discuss potential solutions in light of the recent jury ruling.
The stakes are high as all parties have presented their arguments on disgorgement and civil penalties, but the judge has left the door open for additional submissions before the big day.