Do Kwon, Terraform Labs Should Get $5.3B Fine, SEC Tells Court

The U.S. Securities and Exchange Commission (SEC) has asked a New York court to impose $5.3 billion in fines on Terraform Labs and co-founder Do Kwon for their role in the $40 billion implosion of the Terra ecosystem in 2022.

Terraform Labs and Kwon were found liable on civil fraud charges earlier this month, when a Manhattan jury concluded that they had misled investors about the stability of their so-called “algorithmic” native stablecoin, Terra USD (UST), and the use cases for the Terra blockchain.

In the SEC’s motion for final judgment, filed two weeks after the conclusion of the trial, the regulator is requesting that Terraform Labs and Kwon pay $4.74 billion in disgorgement and prejudgment interest, as well as a collective $520 million in civil penalties: $420 million from Terraform Labs and $100 million from Kwon’s pocket.

Source: Do Kwon, Terraform Labs Should Get $5.3B Fine, SEC Tells Court