{"id":12872,"date":"2024-04-24T11:18:23","date_gmt":"2024-04-24T08:18:23","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-seeks-5-3-billion-penalty-for-do-kwon-and-terraform-labs\/"},"modified":"2024-04-24T11:18:23","modified_gmt":"2024-04-24T08:18:23","slug":"sec-seeks-5-3-billion-penalty-for-do-kwon-and-terraform-labs","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-seeks-5-3-billion-penalty-for-do-kwon-and-terraform-labs\/","title":{"rendered":"SEC Seeks $5.3 Billion Penalty for Do Kwon and Terraform Labs"},"content":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) filed a motion<\/a> seeking $5.3 billion in compensation and fines from Terraform Labs (TFL) and its founder, Do Kwon.<\/p>\n

On April 5, a jury in the Southern District of New York found TFL and Kwon guilty of investor deception and securities fraud. The trial lasted nine days and was conducted in absentia.<\/p>\n

According to the SEC’s demand, the company and its co-founder are required to pay $4.12 billion in compensation to investors and $545 million to cover legal costs. TFL and Kwon were also assigned civil penalties of $420 million and $100 million, respectively.<\/p>\n

In response, lawyers for Terraform Labs proposed<\/a> a “maximum possible” payment of $3.4 million. Representatives for the company’s head suggested<\/a> an amount around $800,000.<\/p>\n

In addition to the monetary penalty, the Commission urged a ban on Kwon from holding executive positions in securities-issuing firms and requested full disclosure of his accounts and assets. If approved, TFL would also face restrictions in the U.S.<\/p>\n

\n

\u201cThe defendants have shown no remorse for their actions. There can be no doubt that they are in a position where further violations are not only possible but likely already occurring,\u201d the SEC stated.<\/p>\n<\/blockquote>\n

The trial is proceeding without Kwon himself. He is currently awaiting extradition in Montenegro.<\/p>\n

In early March, the High Court of Podgorica approved the extradition<\/a> of the entrepreneur to South Korean authorities. However, the prosecution objected<\/a>, citing procedural violations, leading to the cancellation of the process.<\/p>\n

In South Korea, Kwon faces numerous charges, including violations of capital market laws.<\/p>\n

Earlier, it was reported that the TFL co-founder will be released from prison<\/a> after serving his sentence for attempting to cross the border with forged documents.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) filed a motion seeking $5.3 billion in compensation and fines from Terraform Labs (TFL) and its founder, Do Kwon. On April 5, a jury in the Southern District of New York found TFL and Kwon guilty of investor deception and securities fraud. The trial lasted nine days and […]<\/p>\n","protected":false},"author":1,"featured_media":12871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,128,852],"class_list":["post-12872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-sec","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"75","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=12872"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12872\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/12871"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=12872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=12872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=12872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}