Terraform and lawyer Do Kwon negotiate, advocating to reduce a $5.3 billion fine to $1 million.
Terraform Labs and its co-founder Do Kwon's lawyers argue that a fine closer to $1 million would be more reasonable, rather than the $5.3 billion proposed by the U.S. Securities and Exchange Commission (SEC) after being found guilty of fraud.
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Terraform, Do Kwon Facing Heavy Civil Fines
Earlier this month, a jury ruled that Terraform and Kwon did indeed defraud investors, leading to a conviction for civil fraud.
The SEC subsequently filed a motion seeking a court order for Terraform Labs and its founder Do Kwon to pay a total of $4.7 billion in restitution and prejudgment interest, with Terraform and Do Kwon each facing additional civil fines of $420 million and $100 million, respectively.
However, according to legal documents, representatives for Do Kwon and Terraform argued:
The court should not grant any injunctions or confiscate illegal gains; at most, TFL should be subject to a civil fine of $1 million.
A spokesperson for Terraform told The Block that they are "carefully weighing various options and next steps."
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