🔔 Ding-ding! SEC is asking for a whopping $5.3B from Terraform Labs & Do Kwon over alleged fraud. They say it's a "conservative" estimate of the "ill-gotten gains". 🤯

Terraform & Kwon were found guilty of misleading investors about the stability of their native stablecoin, Terra USD (UST), & the use cases for the Terra blockchain. 💸

The SEC wants them to cough up $4.74B in disgorgement & prejudgment interest, plus $520M in civil penalties. That's $420M from Terraform Labs & $100M from Kwon's pocket. Ouch! 💔

Sales of LUNA & MIR to institutional investors totaled $69.5M, sales of LUNA & UST through the Luna Foundation Guard (LFG) totaled $1.8B, & investors bought $2.3B in UST on various crypto platforms between June 2021 & May 2022. 📈

The SEC is also seeking injunctions to prevent Kwon & Terraform Labs from committing further securities violations & buying or selling any crypto asset security. They also want to ban Kwon from ever serving as an officer or director at an SEC-reporting public company. 🚫

Terraform Labs, currently in bankruptcy with about $150M in assets remaining, says the court should not grant the SEC any injunctive relief or disgorgement against it, only an "appropriate civil penalty" per violation. 🏛️

What do you think? Is the SEC being too harsh or is it just desserts for Terraform Labs & Kwon? Share your thoughts below! 👇 #DeFi #Web3 #CryptoNews

P.S. Kwon is currently chilling in Montenegro, where he was arrested last year for attempting to use forged Costa Rican travel documents. He's facing extradition requests from both the U.S. & South Korea. 🌍