Federal regulators are requesting Terraform Labs and its co-founder Do Kwon be fined $5.3 billion for defrauding investors, shortly after the two parties were found liable for a multi-billion-dollar fraud.

According to a court filing from April 19, the U.S. Securities and Exchange Commission requested Kwon and Terraform pay roughly $4.7 billion in disgorgement and prejudgment interest for their role in 2022’s Terra-Luna collapse. The SEC is also asking the court to order Terraform and Kwon to pay $420 million and $100 million, respectively, in civil penalties.

“The Court should send an unequivocal message that this sort of brazen misconduct, and Defendants’ misbegotten attempt to excuse their behavior by crafting new rules and standards of behavior for crypto markets in contravention of …