Terraform Labs, the company behind the Luna cryptocurrency project, has challenged the Securities and Exchange Commission's (SEC) decision on $5.3 billion in damages and civil penalties.
A different judgment proposed
In a supplement to its opposition to the SEC's motion for final judgment, Terraform Labs' lawyers argued that the financial commission was not entitled to this considerable sum. They also pointed out that the SEC had presented no evidence that the activities of Terraform Labs or its founder, Do Kwon, in the U.S. had caused the losses at the center of the civil case.
Luna Foundation Guard, a non-party in the civil case
Terraform Labs also stressed that any damages obtained by the SEC would have to be obtained from Luna Foundation Guard (LFG), a "non-party" in the civil case. According to Terraform Labs' lawyers, the SEC has presented no evidence that Terraform Labs' token offerings and sales took place primarily in the U.S., meaning that the financial commission is not entitled to this considerable sum.
A million dollars, a more appropriate sum
In another document, Terraform Labs felt that $1 million in civil penalties would be a more appropriate sum than the SEC's proposal. Do Kwon, who is currently in Montenegro awaiting extradition to the US or South Korea, also objected to the SEC's proposed remedies for the civil case, arguing that the financial commission was not entitled to this considerable sum.
Judgment expected on May 22
All parties are expected to present arguments for the proposed remedies on May 22 before Judge Jed Rakoff. A jury has already found Terraform Labs and Do Kwon guilty of defrauding investors after a two-week trial with the SEC.
