April

Coin

<ul class="news-points">
 <li>Terraform Labs challenges the huge $5.3 billion penalty imposed by the SEC in the legal case.</li>
 <li>The firm requests the court for a lower penalty of $1 million arguing that Terraform’s most of the stablecoins were sold overseas.</li>
 <li>Judge Jed Rakoff orders the lawyers representing Terraform and the SEC to assemble in the court on May 22.</li>
</ul>
According to a recent<a href="https://www.bloomberg.com/news/articles/2024-05-02/terraform-labs-calls-5-3-billion-sec-fraud-fine-bid-unjustified" target="_blank" rel="noopener noreferrer nofollow"> Bloomberg report</a>, Terraform Labs and its founder, Do Kwon, challenged the huge $5.3 billion penalty proposed by the Securities and Exchange Commission (SEC) in the lawsuit. Claiming that most of the firm’s stablecoins were sold overseas, the company<a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.238.0.pdf" target="_blank" rel="noopener noreferrer nofollow"> requested</a> the court to charge a significantly lower penalty of $1 million.
On April 5, a jury<a href="https://www.bloomberg.com/news/articles/2024-04-05/do-kwon-and-terraform-labs-found-liable-for-fraud-in-sec-trial" target="_blank" rel="noopener noreferrer nofollow"> found </a>Do Kwon liable for the collapse of the collapse of Terraform, which wiped out $40 billion in investor assets, leading to a severe crypto winter. While Kwon and Terraform were found guilty of defrauding investors regarding the sale of TerraUSD (UST), Luna (LUNA), and wLUNA, the regulators sought approximately $4.7 billion in disgorgement and prejudgment interest from them. In addition, the SEC charged a total of $520 million in civil penalties.
The post <a href="https://coinedition.com/terraform-labs-and-do-kwon-challenge-the-proposed-5-3b-penalty-report/" rel="noopener noreferrer nofollow">Terraform Labs and Do Kwon Challenge the Proposed $5.3B Penalty: Report</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

Terraform Labs and Do Kwon Challenge the Proposed $5.3B Penalty: Report

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