SEC pushes back against Terraform’s claims fraud happened outside US

May 7, 2024 Coin Telegraph

Terraform claims SEC offered ‘no evidence’ for $4.7B in disgorgement

May 2, 2024 Coin Telegraph

Terraform claims SEC offered ‘no evidence’ for .7B in disgorgement

Lawyers for the firm claimed that any alleged losses caused by the platform’s or Do Kwon’s actions happened outside the United States, beyond the SEC’s authority in the civil case.

With a hearing scheduled for May 22 to listen to proposed remedies in the United States Securities and Exchange Commission’s (SEC’s) case against Terraform Labs (TFL) and co-founder Do Kwon, the crypto firm has argued for a substantially different judgment than that proposed by the regulator.

In a supplement to Terraform’s opposition to the SEC’s motion for final judgment filed on May 1, lawyers representing the crypto firm argued the financial regulator was not entitled to $5.3 billion in disgorgement, interest and civil penalties following a jury finding TFL and Kwon liable for fraud. Terraform built on its previously asserted claims that any disgorgement would effectively have to be obtained from the Luna Foundation Guard (LFG), a “non-party” in the civil case.

According to lawyers for Terraform, the SEC had “no evidence” that the platform’s or Kwon’s activities in the U.S. caused the losses at the center of the civil case. If the commission were to claim disgorgement and civil penalties, according to Terraform, it would give the regulatory a “territorially unlimited injunction.”

US Court to hear proposed remedies from Terraform Labs, Do Kwon in May

April 30, 2024 Coin Telegraph

Terraform proposes $1M penalty for SEC case, no relief or disgorgement

April 29, 2024 Coin Telegraph

Terraform proposes M penalty for SEC case, no relief or disgorgement

Coin Telegraph

Lawyers for Terraform claimed that seeking disgorgement from the platform would involve the Luna Foundation Guard, a “non-party” in the SEC’s civil case.

Lawyers representing Terraform Labs have filed a motion in opposition to a request from the United States Securities and Exchange Commission (SEC) for $5.3 billion in disgorgement and civil penalties against the firm and its co-founder Do Kwon.

In an April 26 filing in U.S. District Court for the Southern District of New York, Terraform’s legal team suggested that a court impose a maximum of a $1 million civil penalty after a jury ruled that the platform and Kwon were liable for fraud. Terraform argued the court “should not grant any injunctive relief or disgorgement” as the funds would effectively have to be obtained from the Luna Foundation Guard (LFG) — a “non-party” in the civil case.

“To pursue disgorgement from LFG, the SEC was required to name LFG as a defendant or relief defendant, which it did not do [...] This statute bars an order against TFL [Terraform Labs] to disgorge LFG funds because TFL did not receive them,” said the filing. “Those funds belong to LFG, not TFL, and the token sales from which they arose were conducted by LFG.”

SEC Looking for $5,300,000,000 Penalty Against Terra-Founder Do Kwon, Alleging ‘Brazen Misconduct’: Report

April 24, 2024 The Daily Hodl

Do Kwon appeals Montenegrin court decision, claiming ‘unfounded and illegal’ interpretation

April 24, 2024 Coin Telegraph

Coin Telegraph

The question of the Terraform co-founder’s extradition to either the U.S. or South Korea has been bouncing between lower and higher courts in Montenegro for months.

Terraform Labs co-founder Do Kwon’s legal saga continues with reports of his lawyers filing an appeal against a high court decision that pthe question of his extradition to the United States or South Korea to Montenegro’s justice minister.

According to an April 23 report from Montenegrin news outlet Vijesti, Kwon’s legal team filed an appeal against an April 8 decision from the High Court in Podgorica, which would have allowed Justice Minister Andrej Milović to decide on the Terraform co-founder’s extradition. That high court decision came in response to Montenegro’s Supreme Court approving a request for a protection of legality after a lower court ruled Kwon could be extradited to South Korea.

Kwon’s lawyers reportedly called the high court decision “unfounded and illegal” and a “bizarre” interpretation of the law. It’s unclear if the appeal will stay the question of Kwon’s extradition, which has been bouncing between lower and higher courts for months as his legal team files motions and appeals regarding procedure.

SEC seeks $5.3B judgment against Terraform Labs and Do Kwon

April 22, 2024 Coin Telegraph

SEC seeks .3B judgment against Terraform Labs and Do Kwon

Coin Telegraph

After a jury found Terraform Labs and Do Kwon liable for fraud in its case with the SEC, the commission filed a motion requesting $5.3 billion in disgorgement and civil penalties.

The United States Securities and Exchange Commission (SEC) has filed a motion requesting billions of dollars in disgorgement and civil penalties against Terraform Labs and its co-founder Do Kwon following a verdict in its civil case.

In an April 19 filing in U.S. District Court for the Southern District of New York, the SEC requested Kwon and Terraform pay roughly $4.7 billion in disgorgement and prejudgment interest after the civil case ruling, as well as a combined $520 million in civil penalties — $420 million from Terraform and $100 million from Kwon. The commission, Terraform and Kwon filed their briefs for potential remedies in the civil case simultaneously, with the crypto firm suggesting a maximum civil penalty of $3.5 million and Kwon proposing only $800,000.

In addition to the monetary judgment, the SEC proposed barring Kwon from serving as an officer or director of a securities issuer and providing complete details of his accounts and assets. If approved, Terraform would also have a “conduct-based injunction” imposed on the firm to prevent “engaging in essentially the same behavior that led to the massive fraud.” The proposed remedies and civil judgment have yet to be ruled on by a judge.

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