Guard

Foundation

Billion

Terraform Labs and co-founder Do Kwon are challenging the SEC’s demand for a $5.3 billion fine. In a recent<a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.238.0.pdf" target="_blank" rel="noreferrer noopener" data-wpel-link="external"> filing </a>with the U.S. District Court for the Southern District of New York, Terraform’s lawyers suggested a lower penalty of $1 million, claiming that the larger amount is too high and unjustified. 
The SEC’s action follows a New York jury’s verdict, which found that Terraform and Kwon had misled investors with their sales statements for digital currencies TerraUSD (UST), Luna, or wLUNA.&nbsp; 
This ruling supports the SEC’s motion for the recovery of illegal proceeds and additional penalties totaling $5.3 billion. It also wants the court to bar Kwon from holding any executive or director’s position at a company issuing securities, with the requirement of detailed disclosure regarding financial assets. 
Attorneys for TerraForm, however, insist that Luna Foundation Guard would supply any settlement payout money and is not a defendant in this lawsuit. They argue that since LFG is not a party to this action, the fine in excess of $1 million is hugely disproportionate; therefore, an amount of $1 million is just fine as a reduced penalty. 
The background of all this legal wrangling is the dramatic crash of UST in May 2022, which wiped out more than $50 billion in value, adding further complexity to Terraform’s and its stakeholders’ financial landscape. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
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</blockquote>

Terraform Labs Challenges SEC’s $5.3 Billion Penalty Demand

The Crypto Times

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