The Securities and Exchange Commission (SEC) has asked a New York judge to impose a $5.3 billion fine on Terraform Labs and Do Kwon to resolve a civil fraud case against them. The regulator says the fines are a “conservative” but “reasonable approximation” of the “illegal proceeds” Terraform and Kwon made from the fraud.. They also added that Kwon has “no illegal profits… that could be withdrawn.”
Kwon remains in Montenegro, where he was arrested and jailed last year for attempting to use counterfeit Costa Rican travel documents en route to Dubai.
The Montenegrin government is currently considering competing extradition requests from the United States and Kwon's home country South Korea, which hope to put him on trial on criminal charges related to the breakup of Terra.