Terraform Labs Calls $5.3 Billion SEC Fraud-Fine Bid Unjustified – Bloomberg

The US Securities and Exchange Commission claimed in its lawsuit against Terraform and Kwon, the inventor of the failed TerraUSD stablecoin, that the firm’s collapse in 2022 wiped out $40 billion in investor assets and shook the cryptocurrency world.

But in a filing Wednesday, Terraform lawyers argued the firm’s “offers and sales of tokens occurred almost entirely outside the US,” and that the SEC provided no evidence to suggest Terraform and Kwon’s “limited activities in the US directly caused any losses, much less the billions the SEC seeks in disgorgement.”

Source: Terraform Labs Calls $5.3 Billion SEC Fraud-Fine Bid Unjustified – Bloomberg