Do Kwon and Terraform Labs Seek Summary Judgment in SEC Fraud Case
The founder of the Terraform ecosystem, Do Kwon, and Terraform Labs have requested a summary judgment from a federal judge in response to the US Securities and Exchange Commission’s (SEC) fraud case against them. The motion filed by Kwon and Terraform Labs argues that the assets in question are not securities, as alleged by the SEC, and urges the judge to dismiss the securities and fraud suit. A summary judgment is a formal request for the judge to rule that the SEC has not provided sufficient evidence to proceed with a trial.
Terraform Challenges SEC’s Failure to Prove Unregistered Securities
Terraform Labs has asked the court to rule in its favor by contesting the SEC’s failure to prove that unregistered securities were offered. The company argues that after an extensive investigation and discovery period, the SEC has not demonstrated any wrongdoing on their part. Terraform’s lawyers claim that much of the evidence presented by the SEC is false, suggesting that the agency knew some of its allegations were baseless. The SEC had sued Terraform and Kwon for allegedly defrauding US investors by sending Bitcoin to a Swiss financial institution and withdrawing $100 million.
SEC Chair Comments on Lawsuit Against Terraform
SEC Chair Gary Gensler praised his staff for their dedication during the investigation into Terraform and Kwon. He stated that the case highlights how some crypto firms will go to great lengths to avoid compliance with securities laws. Gensler emphasized that Terraform and Kwon failed to provide full disclosure and misled investors, resulting in significant losses. The SEC remains committed to enforcing regulations in the crypto industry.
Hot Take: Terraform Labs Seeks Dismissal of SEC Fraud Case
Terraform Labs, led by founder Do Kwon, has filed a motion for summary judgment in response to the SEC’s fraud case. The company argues that the assets in question are not securities and requests the judge to dismiss the suit. Terraform challenges the SEC’s failure to prove unregistered securities were offered and claims that much of the evidence presented is false. SEC Chair Gary Gensler commended his staff for their work and highlighted the importance of enforcing securities laws in the crypto industry. The outcome of this case will have significant implications for the regulatory landscape surrounding cryptocurrencies.
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