SEC Targets Terra Founder with Record $5.3 Billion Fine

The United States Security and Exchange Commission (SEC) wants to slap a Earth Ecosystem disgraced founder with a multi-billion dollar fine, according to The United States.

In a new report, Bloomberg writes that the regulatory agency seeks to fine Do Kwon $5.3 billion for his role in the downfall of the Terra ecosystem in 2022, where it was alleged he was involved in "brazen misconduct.

This month, Kwon and Terraform Labs were held liable for fraud in the conduct of the trial, which opens up gates for what could be the biggest fine in the crypto industry. The report states that Kwon and Terraform raked in close to $4 billion by selling tokens as unregistered securities.

The sanction would include a $4.2 billion disgorgement penalty, $545 million for prejudgment interest, $420 million, and $100 million civil penalties for the firm and Kwon, respectively.

Kwon's defense attorneys, on the other hand, have argued that since the token sale took place outside of the US, it is not possible that they violated federal laws.

Kwon was first arrested in Montenegro in 2023 after being found attempting to board a flight to the United Arab Emirates with a forged Costa Rican passport.

Now he is in custody awaiting extradition to both the United States and South Korea, where he is sought by their respective authorities in relation to the $40 billion collapse of the Terra ecosystem.