Following his recent conviction for fraud, the Securities and Exchange Commission (SEC) is reportedly proposing a historic fine of $5.3 billion against Do Kwon, the founder of the Terra ecosystem. This penalty has the potential to become the most substantial in the history of bitcoin.
According to Bloomberg, the Securities and Exchange Commission (SEC) responded to a court ruling that determined Kwon and Terraform Labs had unlawfully obtained around $4 billion through the sale of unregistered securities.
The illicit profits will be confiscated, amounting to a disgorgement of $4.2 billion. Additionally, there will be an interest payment of $545 million, civil fines of $420 million for the firm, and a penalty of $100 million for Kwon.
Kwon asserts that the token sales were not in violation of U.S. law as they were conducted beyond its jurisdiction.
Kwon’s legal troubles escalated with his arrest in Montenegro in 2023 for trying to enter the UAE using a counterfeit Costa Rican passport.
Extradition is currently awaiting approval for the purpose of facing charges in the United States and South Korea in connection with Terra’s bankruptcy, which amounts to $40 billion.
Sophia Hernandez is an experienced crypto writer who has been writing about crypto and blockchain technology for 3 years. She has a deep understanding of the complexities of the crypto market and is skilled at breaking down these concepts into easy-to-understand language for readers.
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