Legal Showdown: Terraform and Do Kwon Argue for $1M Fines, Slam SEC’s $5.3 Billion Proposal
The post Legal Showdown: Terraform and Do Kwon Argue for $1M Fines, Slam SEC’s $5.3 Billion Proposal appeared first on Coinpedia Fintech News
The crypto law scenes are getting intense. The US SEC has slapped a whopping $5.3 billion penalty against Terraform Labs and its co-founder, Do Kwon, in disgorgement and civil penalties. However, Terraform’s legal team argues that this amount is excessive and suggests a maximum civil penalty of $1 million. They claim that seeking disgorgement from Terraform would involve funds held by the Luna Foundation Guard (LFG), which is not directly involved in the SEC’s civil case.
Terra’s Counter Attack on SEC’s Unfair Demand
In response to the SEC’s motion on a $5.3 billion penalty, Terraform’s lawyers filed a motion last week opposing the proposed penalties. They state that the court should not grant injunctive relief or disgorgement and that any penalties should be limited to a $1 million civil penalty. Plus, Do Kwon’s legal team opposes the proposed remedy of providing complete details of his accounts and assets, citing his Fifth Amendment rights against self-incrimination.
In the legal proceeding, Do Kwon was absent due to travel restrictions imposed after his arrest in Montenegro in March 2023 for using falsified travel documents. While Montenegro’s Supreme Court has suspended the decision to extradite him to South Korea, there is a possibility that he may face trial in New York instead.
Terraform and Ripple: Battling the SEC’s Wrath
Terraform and Ripple are at a crossroads with the SEC over alleged violations. The SEC charged Terraform and Kwon in February 2023 over issues related to the algorithmic stablecoin Terra USD (UST). In April, a jury found them liable for defrauding investors after a two-week trial. However, Judge Jed Rakoff has yet to rule on the proposed remedies.
On the other hand, Ripple filed a rebuttal to the regulator’s proposal of a $2 billion fine last month. Ripple’s CEO, Brad Garlinghouse, has criticized the SEC’s demands, stating there is no precedent for such a hefty fine.
Big shots clash with SEC over crypto fines! will they budge or will the SEC win big? Stay tuned to find out!
Filed under: Bitcoin - @ April 30, 2024 6:12 am