Activity tagged "Terra"

The SEC is asking the judge in the Terra lawsuit to order $4.2 billion in disgorgement, a $420 million penalty against Terraform Labs, and a $100 million penalty against Do Kwon.

PLAINTIFF’S MOTION FOR FINAL JUDGMENT AGAINST DEFENDANTS Plaintiff Securities and Exchange Commission (“SEC”) respectfully moves the Court to enter final judgment against Defendants Terraform Labs PTE LTD. and Do Hyeong Kwon (collectively, “the Defendants”). On April 5, 2024, the jury returned a verdict against the Defendants on all counts. For the reasons set forth in the SEC’s memorandum of law and the accompanying declarations of Avron Elbaum and Donald Battle, submitted herewith, the Court should (1) enjoin Defendants from further violation of Sections 5 and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; (2) jointly and severally order them to pay disgorgement of $4,192,147,847 plus $545,748,909 in prejudgment interest; (3) ordering Terraform and Kwon to pay a $420 million and a $100 million civil penalty, respectively; (4) imposing a conduct-based injunction on Defendants, and an officer-and-director bar on and a sworn accounting from Kwon; and (5) holding that the fraud- related monetary remedies imposed on Terraform are non-dischargeable in bankruptcy, and enter final judgment.

They also want Kwon banned from serving as an officer or director of a publicly traded company.

Kwon has opposed any injunction or disgorgement against him, and says that the potential penalties should be somewhere around $250,000–$300,000.