Terraform Labs (TFL) and its co-founder, Do Kwon, have presented a different judgment proposal in response to the United States Securities and Exchange Commission’s (SEC) case. The crypto firm’s lawyers argued against the SEC’s request for $5.3 billion in disgorgement, interest, and civil penalties, stating that the regulator had no evidence that TFL or Kwon’s activities in the US caused the losses in question. Terraform also claimed that any disgorgement should come from the Luna Foundation Guard (LFG), a non-party in the case. They contended that the SEC’s proposed remedies would create a “territorially unlimited injunction.” Terraform suggested that $1 million in civil penalties would be more appropriate. Kwon, who is awaiting extradition, opposed the SEC’s proposed remedies on similar grounds. The jury found Terraform and Kwon liable for fraud, and all parties are scheduled to present their arguments for proposed remedies on May 22.
Terraform refutes SEC's lack of evidence on $4.7B disgorgement claim.