A federal judge in the U.S. District Court for the Southern District of New York has instructed legal representatives of the United States Securities and Exchange Commission (SEC), Do Kwon, and Terraform Labs to present arguments for proposed remedies following a jury's fraud verdict. The court appearance is scheduled for May 22, as mentioned in an April 29 court filing by Judge Jed Rakoff.

All parties involved have already made submissions regarding disgorgement and civil penalties. The SEC has requested approximately $4.7 billion in disgorgement and prejudgment interest, along with a combined $520 million in civil penalties. In contrast, Terraform's legal team has proposed a $1 million civil penalty without any disgorgement. They argue that the required funds should be obtained from the Luna Foundation Guard (LFG), a non-party in the case.

Supplements to the proposals are permitted until May 6 and May 1 for both parties, respectively. Following a jury's decision on April 5, which found Terraform and Kwon guilty of defrauding investors, Kwon's ability to attend the court hearing on May 22 remains uncertain due to his arrest in Montenegro.

Meanwhile, Terraform is undergoing bankruptcy proceedings after filing for Chapter 11 protection. The company reported estimated liabilities and assets ranging between $100 and $500 million during this period. As Kwon's extradition situation remains unresolved, it is uncertain whether he will be present in court in May.