Terraform Labs Calls $5.3 Billion SEC Fraud-Fine Bid Unjustified

Terraform Labs Pte. and co-founder Do Kwon, after being found liable for fraud by a New York jury last month, told a judge they shouldn’t have to pay the $5.3 billion fine requested by US regulators because most of the firm’s stablecoins were sold overseas.

The US Securities and Exchange Commission claimed in its lawsuit against Terraform and Kwon, the inventor of the failed TerraUSD stablecoin, that the firm’s collapse in 2022 wiped out $40 billion in investor assets and shook the cryptocurrency world.

But in a filing Wednesday, Terraform lawyers argued the firm’s “offers and sales of tokens ...