The U.S. SEC demands the recovery of $5.3 billion in illegal gains and civil penalties from Terraform Labs and Do Kwon

ChainCatcher news, according to Cointelegraph, after a jury found Terraform Labs and Do Kwon guilty of fraud, the U.S. Securities and Exchange Commission (SEC) filed a motion seeking to recover $5.3 billion in illegal proceeds 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 requested that Terraform Labs and Do Kwon pay approximately $4.7 billion in illegal proceeds and pre-judgment interest, as well as a total of $520 million in civil fines.

Additionally, the SEC proposed to ban Do Kwon from serving as an executive or director of any securities issuer and to provide detailed information about his accounts and assets. On April 5, a New York jury found Terraform and Do Kwon liable for misleading investors in the sale statements of TerraUSD (UST), Luna, and wLUNA.