Judge Rules Against Terraform Labs in SEC Lawsuit
In a legal battle similar to Ripple’s case, Terraform Labs attempted to use the same defense, but Judge Rakoff was not convinced. The court transcripts revealed that Judge Rakoff granted a summary judgment in favor of the SEC, declaring TERRA and LUNA as securities. However, Terraform Labs can still appeal this decision.
SEC Fails to Classify MIR Tokens as Securities
The SEC also sought to categorize MIR tokens as securities, but Judge Rakoff ruled that they passed the Howey Test. Any profit gained from MIR tokens was attributed to the performance of the assets they represented, not Terraform Labs’ efforts. The testimony of former and current Jump Trading employees, although compelling, did not impact the ruling.
Jury Trial to Commence in January
The jury trial against Terraform Labs is scheduled to begin in January. The outcome of this trial will further determine the legal status and future of Terra and other tokens associated with Terraform Labs.
Hot Take: Uncertain Future for Terraform Labs
The recent ruling against Terraform Labs by Judge Rakoff raises concerns about the future of the company and its tokens. While MIR tokens were spared from being classified as securities, TERRA and LUNA face potential challenges ahead. The upcoming jury trial will play a crucial role in shaping the outcome and may have significant implications for the crypto industry as a whole. As investors and enthusiasts, it is essential to closely follow these developments and stay informed about the evolving regulatory landscape surrounding cryptocurrencies.
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