Terra vs SEC: SEC Imposes $5.2B Penalties on Terraform Labs and CEO Do Kwon for Crypto Misleading
The post Terra vs SEC: SEC Imposes $5.2B Penalties on Terraform Labs and CEO Do Kwon for Crypto Misleading appeared first on Coinpedia Fintech News
After a nine-day trial, Terraform Labs and its former CEO, Do Kwon, were found guilty of misleading investors in crypto assets. They violated the Securities Act 1933 by selling crypto assets without proper registration.
Director of the SEC, Gurbir S. Grewal, supports the decision of the jury. He points out that the company and Kwon have given false information about Terra USD’s stability and its use of blockchain. This has resulted in huge losses for investors and a drop in market value. Grewal emphasised on the necessity of compliance in the crypto industry and promises to keep protecting investors. Following this judgement, the SEC has heavily fined Terraform Labs and Do Kwon.
Read more: Terra vs SEC: Jury Delivers Verdict in $40 Billion Crypto Fraud Case
SEC Pursues $5.2B Penalties Against Terraform and Do Kwon
The SEC has imposed substantial penalties totaling $5.2 billion on Terraform Labs and its co-founder, Do Kwon. On April 19, the SEC filed in a New York court, demanding $4.7 billion as repayment and interest. They also want $520 million in fines: $420 million from Terraform and $100 million from Kwon. Terraform suggested a $3.5 million penalty, and Kwon proposed $800,000. In addition, the SEC wants Kwon to cease being an officer or director of security companies and wants Terraform to follow the rules to avoid further challenges.
Read more: Terralabs vs SEC: Fraud or Failure? Trial Heats Up as Accusations Fly
SEC Points to No Remorse and More Violations
The SEC said the defendants have no regrets and might violate the rules again. They accused Terraform and Kwon of misleading investors about TerraUSD (UST), Luna, and wLUNA. Kwon also has legal issues in Montenegro and could face charges in the U.S. and South Korea.
Terra Investors Watch Price Moves Amid Legal Issues for Do Kwon
Terra (LUNA) investors are closely monitoring the prices. Founder Do Kwon is under house arrest and might be jailed after being convicted of fraud. The SEC accused him of deceiving investors about TerraUSD and its use with a Korean app.
Despite these legal issues, Terra Luna Classic (LUNC) ‘s price shows potential growth. Analysts have predicted a target price of $0.00058 during the bull run. Terra’s current price is $1.049247 per LUNA/USD, with a market cap of USD 716.88 million. The 24-hour trading volume is USD 140.55 million, with rising futures indicating a market recovery.
Read more: Terra vs SEC: Terraform Labs Presents Closing Arguments in Civil Fraud Trial Amidst Allegations of Investor Deception
