The SEC’s demand for damages and interest amounts to approximately $4.7 billion, relating to the collapse of the Terra-Luna project in 2022. Additionally, the regulatory body is seeking civil penalties of $420 million and $100 million against Terraform Labs and Do Kwon, respectively.
“The SEC’s statement asserts the need for the court to clearly convey that defendants’ irresponsible actions and their attempts to justify their behavior through cryptocurrency market regulations and standards are in violation of securities laws, and such conduct will not be tolerated by authorities,” the SEC stated.
It is worth noting that Do Kwon was convicted of fraud in an earlier civil case, with the decision made in absentia in early April. However, there is a possibility that Kwon will soon face the American justice system in person, as the extradition of the South Korean businessman has been approved by a Montenegrin court. The next step in the process lies in the hands of the Minister of Justice of Montenegro.