The United States Securities and Exchange Commission (SEC) has taken legal action against Terraform Labs and co-founder Do Kwon, demanding billions of dollars in civil fines and disgorgement for alleged violations.
– SEC demands $4.7 billion in disgorgement and prejudgment interest from Terraform Labs and Kwon
– SEC also seeks $520 million in civil penalties, with Terraform Labs responsible for $420 million and Kwon responsible for $100 million
– Terraform Labs and Kwon propose lower civil penalty amounts in their briefs
– SEC considering additional measures to prevent future violations, including barring Kwon from acting as an officer or director of a securities company
In taking action against Terraform Labs and Kwon, the SEC demonstrates its commitment to protecting investors and enforcing securities laws to maintain market integrity.
