The US Securities and Exchange Commission (SEC) is seeking to impose a fine of $5.3 billion on Terraform Labs Pte. and its co-founder Do Kwon, according to a report from Bloomberg. Kwon, notable for the development of the failed TerraUSD stablecoin, is potentially facing what can be considered the crypto industry’s biggest fine if the SEC’s requests are agreed upon by the court.
This development comes after Kwon and Terraform were found liable for acts of fraud earlier this month, following a two-week trial in New York. According to the SEC’s filing made on April 19 to the Southern District Court of New York, the unregistered sales of tokens such as LUNA and UST allegedly amounted to over $4 billion.
This fine, if sanctioned, would surpass the one levied on Zhao and Binance. However, it is important to note that Kwon’s lawyers have made separate filings, pushing for a lower penalty for their client.
More information regarding the case still awaits the public eye, as the claims against Terraform Labs and Kwon remain under scrutiny in the complex landscapes of unregistered cryptocurrency sales and fraudulent activities. Professionals in the field ought to be looking out for the verdict, as it could set a critical precedent for the handling of future crypto industry-related lawsuits.