According to PANews, following a jury verdict that found Terraform Labs and Do Kwon guilty of fraud, the U.S. Securities and Exchange Commission (SEC) has filed a motion seeking to recover $5.3 billion in illicit gains and civil penalties. In a document submitted to the U.S. District Court for the Southern District of New York on April 19, the SEC asked Terraform Labs and Do Kwon to pay approximately $4.7 billion in illicit gains and pre-judgment interest, as well as a total of $520 million in civil penalties.
In addition, the SEC proposed to prohibit Do Kwon from serving as an executive or director of a securities issuing company and to provide detailed information about his accounts and assets. On April 5, a New York jury found Terraform and Do Kwon guilty of allegedly deceiving investors in the sale statements of TerraUSD (UST), Luna, and wLUNA.