The US Securities and Exchange Commission has requested a New York judge to impose a $5.3 billion fine for fraud and other damages against Terraform Labs and founder Do Kwon.
A report from CryptoPotato detailed that the American regulator has ordered the involved to pay $4.2 billion in disgorgement fees and $546 million in prejudgment interest in a filing dated April 19.
This is after Kwon and his company lost the lawsuit earlier this month filed by the US SEC in relation to the Terra Luna crash in 2022, believed to have cost $40 billion in damages in the broader crypto industry.
Earlier this month, a jury from the US District Court for the Southern District of New York found Terraform Labs and founder Do Kwon liable for civil fraud charges brought by the SEC in February 2023.
The charge alleged that Kwon and his company raised billions from investors through offering crypto asset securities done in a series of unregistered transactions.
If the court grants the SEC’s latest request, the case will overtake Binance’s $4.3 billion settlement with the regulator in November as the largest-valued crypto enforcement in the history of digital assets.
In response to the recent developments, Do Kwon’s legal team claimed that disgorgement fines are unjustified given that he did not receive any illegal schemes independent from Terraform Labs’ earnings. Do Kwon’s lawyers are requesting that he be charged only a little over $800,000.