SEC seeks $5.3b in penalty from Terraform Labs and co-founder Do Kwon

Regulators in the United States are seeking $5.3 billion in fines from Terraform Labs and its co-founder, Do Kwon, following a verdict in its civil case.

According to an April 19 filing with the U.S. District Court for the Southern District of New York, the Securities and Exchange Commission (SEC) has asked Kwon and Terraform Labs to pay $4.7 billion in disgorgement and prejudgment interest.

“Defendants have not shown remorse for their conduct, nor can there be any doubt that they are in position where additional violations are not only possible but likely are already occurring,” the filing said.

On top of the $4.7 billion penalty, the commission is also seeking $420 million from Terraform and $100 from Kwon as combined civil penalties. According to the SEC, the penalties requested are conservative” but “reasonable,” considering the amount of wealth that Kwon amassed from Terraform’s stablecoin.

Further, the SEC has also proposed that Kwon be barred from serving as an officer or director of any security issuer. The defendant would also be required to disclose all his baking accounts and assets.