The filing stated, “Defendants have not shown remorse for their conduct, nor can there be any doubt that they are in a position where additional violations are not only possible but likely are already occurring.” On top of the $4.7 billion penalty, the commission is also seeking $420 million from Terraform and $100 million from Kwon as combined civil penalties.
Furthermore, the SEC has proposed that Kwon be barred from serving as an officer or director of any security issuer. The defendant would also be required to disclose all his banking accounts and assets.
If the proposed remedies and civil judgment are approved, Terraform would also have a “conduct-based injunction” imposed on it to prevent repeat offenses. Both Terraform Labs and Do Kwon have contested the SEC over the fines.
In the background, Kwon is currently facing charges in Montenegro following his arrest in 2023 for using a fake passport.