The SEC has demanded more than $5 billion in penalties from Terraform Labs and Do Kwon

The U.S. Securities and Exchange Commission (SEC) has filed a motion seeking $5.3 billion in compensatory and civil penalties from Terraform Labs and its co-founder Do Kwon.In return, Terraform offered to pay a civil penalty of $3.5 million and Kwon offered to pay $800K.The SEC also proposed to bar Kwon from serving as a director of a securities issuing company and to provide full disclosure of his accounts and assets.Terraform could also receive an injunction prohibiting it from operating.On April 5, a jury found Terraform and Kwon guilty of defrauding investors with respect to UST and Luna.