Guard

April

Foundation

<ul>
 <li>The company’s legal team has submitted a motion in opposition to the $5.3B request.</li>
 <li>A $1 million civil penalty, according to Terraform, would be “far more appropriate.”</li>
</ul>
In response to the <a href="https://thenewscrypto.com/sec-fines-5-2b-in-penalties-on-terraform-labs-and-co-founder-do-kwon/" target="_blank" rel="noopener noreferrer nofollow">SEC’s</a> demand that Terraform Labs and its co-founder <a href="https://thenewscrypto.com/montenegro-supreme-court-reverses-do-kwons-extradition-decision/" target="_blank" rel="noopener noreferrer nofollow">Do Kwon</a> pay $5.3 billion in disgorgement and civil penalties, the company’s legal team has submitted a motion in opposition to the request.
After a jury found Terraform and Kwon guilty of fraud, their defense team requested a maximum civil penalty of $1 million in a filing made on April 26 in the U.S. District Court for the Southern District of New York.
<h3 class="wp-block-heading" id="h-far-more-appropriate-claim">Far More Appropriate&nbsp;Claim</h3>
The monies would essentially have to be collected from the Luna Foundation Guard (<a href="https://lfg.org/" target="_blank" rel="noopener noreferrer nofollow">LFG</a>), a “non-party” in the civil action, and <a href="https://www.terra.money/" target="_blank" rel="noopener noreferrer nofollow">Terraform</a> contended that the court “should not grant any injunctive relief or disgorgement” because of this.
The filing stated:
<blockquote class="wp-block-quote">
 “To pursue disgorgement from LFG, the SEC was required to name LFG as a defendant or relief defendant, which it did not do […] This statute bars an order against TFL [Terraform Labs] to disgorge LFG funds because TFL did not receive them. Those funds belong to LFG, not TFL, and the token sales from which they arose were conducted by LFG.”
</blockquote>
A $1 million civil penalty, according to Terraform, would be “far more appropriate” than the multibillion-dollar plan put up by the SEC. Along with his opposition to the commission’s move, Kwon said in a separate filing that the suggested remedy—the disclosure of all of his financial accounts and assets—would infringe upon his Fifth Amendment right against self-incrimination. Following a two-week trial with the SEC, a jury convicted Terraform and Kwon guilty of investor fraud on April 5.&nbsp;
Highlighted Crypto News Today:
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Terraform and Do Kwon Counter SEC’s $5.3B Demand with $1M Proposal

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