SEC seeks $5.3 billion in penalties against Terraform Labs, Kwon Do-hyung

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Terraform Labs CEO Do-Hyung Kwon, seeking billions of dollars in disgorgement and civil penalties, according to DigitalToday. The SEC is seeking disgorgement of approximately $4.7 billion (6.47 trillion won) from Kwon and Terraform Labs, with Terraform Labs paying $420 million ($579 million) and Kwon paying $100 million ($137.9 million), for a total of $520 million ($716.8 million) in penalties. Kwon was arrested in March 2023 for allegedly using falsified travel documents while attempting to leave the country. He has since been released, but his extradition to the United States or South Korea remains unresolved. He now faces potential criminal charges in both countries.