Crypto News- The U.S. Securities and Exchange Commission (SEC) is making moves against Terraform Labs (TFL) and its former CEO, Do Kwon. They’ve put forward a motion seeking a final judgment, aiming to restrict Kwon’s future roles in securities issuers and demanding hefty penalties.
SEC Targets Terraform Labs CEO Do Kwon: 5.3 Billion Dollars on the Line
The SEC is pushing for around $5.25 billion in penalties from TFL and Kwon for alleged investor fraud. This includes disgorgement, interest, and civil penalties. Kwon and TFL were found liable in a recent trial, even though Kwon himself was absent, dealing with extradition matters in Montenegro.
Gurbir S. Grewal, Director of Enforcement at the SEC, emphasized the agency’s commitment to safeguarding investors and urged compliance within the crypto markets.
SEC Lawyers Resign Amid Criticism Over Debt Box Case Handling
In a separate development, two SEC lawyers resigned following a judge’s rebuke over their handling of a case involving Debt Box. Bloomberg reported that the SEC had pressured them to leave.
Ripple Labs, known for XRP, is pushing back against the SEC’s demand for $2 billion in penalties related to XRP sales. Stuart Alderoty from Ripple criticized the SEC’s stance, arguing it’s part of a broader crackdown on the crypto industry in the U.S.
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