Terraform Labs, through its legal representatives, has opposed the $5.3 billion penalties and disgorgement sought by the SEC, proposing instead a maximum fine of $1 million.

They argue that the funds in question belong to Luna Foundation Guard (LFG), not Terraform, and pursuing them from Terraform would be against the statute since they didn't receive them.

Additionally, Do Kwon, the co-founder, objected to the SEC's demand for disclosing his financial details, citing Fifth Amendment rights. Despite the fraud liability established in April, no ruling has been made on the proposed remedies by Judge Jed Rakoff.

Kwon, facing travel restrictions due to his arrest in Montenegro, is contesting extradition by US and South Korean authorities.