US Court to Hear Terraform Labs and Do Kwon’s Proposed Remedies in May
Terraform Labs and its co-founder, Do Kwon, have been found liable for fraud by a jury in a case with the United States Securities and Exchange Commission (SEC). Subsequently, a federal judge has instructed the parties involved to discuss potential remedies, which could range from millions to billions of dollars. Judge Jed Rakoff has ordered the SEC, Kwon, and Terraform’s lawyers to present their arguments for proposed remedies before the court on May 22, following the jury’s verdict. All parties have already submitted filings regarding their requests for disgorgement (repayment of ill-gotten gains) and civil penalties, but Judge Rakoff’s order allows for further submissions before the court appearance. The SEC has requested that Kwon and Terraform pay around $4.7 billion in disgorgement and prejudgment interest, as well as a combined $520 million in civil penalties. In contrast, Terraform’s legal team has suggested a $1 million civil penalty with no disgorge or injunctive relief. Both parties have until May 6 and May 1, respectively, to provide supplements to their existing proposals.
On April 5, a jury found Terraform and Kwon guilty of defrauding investors after a two-week trial involving the SEC. Kwon, who has been arrested in Montenegro in 2023 for using counterfeit travel documents, was unable to attend the trial in person. He is currently awaiting extradition requests from the United States and South Korea, and it is uncertain whether he will be able to appear in the U.S. court on May 22. Since filing for Chapter 11 protection in January, Terraform has been undergoing bankruptcy proceedings. At the time of reporting, the company has estimated liabilities and assets between $100 and $500 million.
10 thoughts on “US Court to Hear Terraform Labs and Do Kwon’s Proposed Remedies in May”
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Terraform and Kwon’s fraudulent activities are a stain on the integrity of the financial system. They must be held accountable to restore faith in the market! 🙅♂️👎
It’s frustrating to see this kind of fraud go unpunished for so long. They deserve to face the consequences!
How could they deceive investors like that? It’s beyond unethical! They should pay a hefty price for their wrongdoing!
Terraform’s bankruptcy proceedings don’t absolve them of the responsibility to repay their ill-gotten gains. They should be held accountable even if they’re going through financial difficulties!
The fact that Kwon couldn’t even attend the trial in person shows a lack of responsibility and respect for the judicial process. 😑
billion in disgorgement and $520 million in civil penalties seem like a fair punishment for Terraform and Kwon. 💸💣
This is outrageous! Terraform Labs and Do Kwon should be held accountable for their fraudulent actions!
I hope the court holds Terraform and Kwon responsible for their actions and imposes the harshest penalties possible. It’s the only way to ensure justice is served! 😡💢
It’s disappointing to see such blatant disregard for the law and investors’ trust. They should have thought about the consequences before engaging in fraudulent activities!
These fraudulent actions have caused serious harm to innocent investors. Terraform and Kwon must face the consequences and make amends! 💔💸