{"id":8074,"date":"2024-05-03T14:28:21","date_gmt":"2024-05-03T14:28:21","guid":{"rendered":"https:\/\/www.cryptometer.io\/news\/?p=8074"},"modified":"2024-05-03T13:28:30","modified_gmt":"2024-05-03T13:28:30","slug":"terraform-challenges-secs-4-7-billion-claim","status":"publish","type":"post","link":"https:\/\/www.cryptometer.io\/news\/terraform-challenges-secs-4-7-billion-claim\/","title":{"rendered":"Terraform Challenges SEC’s $4.7 Billion Claim"},"content":{"rendered":"\n

Terraform Labs and its co-founder Do Kwon are contesting the Securities and Exchange Commission\u2019s (SEC) demand for $4.7 billion<\/a> in disgorgement, asserting that the alleged losses did not occur within the United States, thus falling outside the SEC’s jurisdiction. As the legal battle unfolds, Terraform argues against the SEC’s proposal for substantial financial penalties following a jury verdict that found the crypto firm and Kwon guilty of fraud.<\/p>\n\n\n\n

Details of the Dispute<\/h3>\n\n\n\n

In recent court filings, Terraform’s legal team emphasized that the activities leading to any alleged losses took place primarily outside the U.S., challenging the SEC’s basis for claiming disgorgement and penalties. The defense argued that the SEC provided “no evidence” directly linking Kwon’s or Terraform’s U.S. activities to the significant losses in question. They propose a drastically reduced penalty of $1 million in civil fines, contrasting sharply with the SEC\u2019s multi-billion dollar figure.<\/p>\n\n\n\n

Also Read: Terraform Labs Disputes SEC\u2019s $5.3 Billion Fine, Offers $1 Million Settlement<\/a><\/p>\n\n\n\n

Key Arguments and Upcoming Hearing<\/h3>\n\n\n\n

The filings also highlighted:<\/p>\n\n\n\n