The United States Securities and Exchange Commission has found Terraform Labs and its co-founder, Do Kwon, responsible for the Terra-Luna collapse in 2022, seeking a fine of $4.7 billion against the two parties. Additionally, the SEC is asking the court to require Terraform and Kwon to pay civil penalties of $420 million and $100 million, respectively. The company and its founder dispute the amount of the civil penalties, with Terraform Labs arguing that a maximum fine of $3.5 million would be more appropriate, while Kwon has offered only $800,000.