The U.S. Securities and Exchange Commission (SEC) is said to be planning to impose a substantial fine on Do Kwon, the disgraced founder of the Terra ecosystem. As per Bloomberg’s recent report, the regulatory agency is seeking a $5.3 billion penalty against Kwon for his involvement in the collapse of the Terra ecosystem in 2022, citing “bold misconduct.”
Kwon and Terraform Labs were found guilty of committing fraud during a recent trial, setting the stage for what could be the biggest fine the crypto industry has seen thus far. The report reveals that Kwon and Terraform generated nearly $4 billion by selling tokens without registering them as securities.
According to the report, the fine would include a disgorgement penalty of $4.2 billion, $545 million in prejudgment interest, as well as civil penalties of $420 million and $100 million for the firm and Kwon, respectively.
However, Kwon’s defense attorneys argue that since the token sales occurred outside of the United States, they could not have violated federal laws.
In 2023, Kwon was initially arrested in Montenegro, a Balkan nation, while attempting to board a flight to the United Arab Emirates (UAE) using a forged Costa Rican passport. He is currently awaiting extradition to the United States and South Korea, where authorities are seeking him for his involvement in the $40 billion collapse of the Terra ecosystem.
Don’t Miss a Beat – Subscribe to receive email alerts directly in your inbox
Check Price Action
Follow us on Twitter, Facebook, and Telegram
Surf The Daily Hodl Mix


Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trades are done at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is it an investment advisor. Please be aware that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Merlin74/WindAwake