A motion has been filed by the United States Securities and Exchange Commission (SEC) to request billions in disgorgement and civil penalties against Terraform Labs and Do Kwon after a verdict was reached in the civil case. The SEC has asked for about $4.7 billion in disgorgement and prejudgment interest and a total of $520 million in civil penalties. Terraform proposed a maximum civil penalty of $3.5 million and Kwon suggested $800,000, while the SEC argued for higher penalties.

In addition to the financial judgment, the SEC has proposed barring Kwon from serving as an officer or director of a securities issuer and disclosing detailed information about his accounts and assets. Terraform would also be subject to a conduct-based injunction to prevent fraudulent behavior.

The SEC expressed dissatisfaction with the defendants' conduct, emphasizing the need to deter such misconduct. The case against Terraform and Kwon revolves around allegations of defrauding investors regarding the offer and sale of TerraUSD (UST), Luna (LUNA), and wLUNA. Kwon's absence during the trial is related to his involvement in court proceedings in Montenegro.

Kwon was arrested for using false travel documents and has faced challenges regarding the possibility of extradition to the U.S. or South Korea. The legal proceedings continue for Terraform Labs and Do Kwon as they handle significant regulatory obstacles, especially with the SEC seeking hefty penalties in response to the alleged wrongdoing.