Lawyers for Terraform Labs and Co-Founder Do Kwon Seek Summary Judgment in SEC Case
Lawyers representing Terraform Labs and its co-founder Do Kwon have requested a New York judge to make a decision in the case brought by the Securities and Exchange Commission (SEC) without a full trial. They argue that they have not done anything wrong and claim that the SEC cannot prove that they offered or sold securities, despite the agency’s complaint in February alleging otherwise. The SEC referenced the collapse of the algorithmic stablecoin Terra USD as evidence.
In a motion for summary judgment, the lawyers state that after two years of investigation and extensive discovery, the SEC has failed to provide evidence of any wrongdoing by the defendants. However, Judge Jed Rakoff has previously rejected an attempt to dismiss the case.
SEC Allegations and Response
The SEC filed a lawsuit against Kwon and Terraform in February, accusing them of raising billions from investors through unregistered transactions involving crypto asset securities. The agency also claimed that Terraform and Kwon did not provide full disclosures to investors regarding LUNA and Terra USD. Algorithmic stablecoins, like Terra USD, use algorithms to maintain price stability.
Kwon and Terraform’s lawyers specifically dispute the SEC’s allegation that they moved millions of dollars into Swiss bank accounts for personal gain. They deny this claim, calling it “outrageous” and comparing it to other cases involving thefts of customer funds. The SEC has declined to comment on the request for summary judgment.
Terraform Labs Co-Founder Daniel Shin Denies Involvement in Collapse
In a separate action, lawyers for Terraform Labs co-founder Daniel Shin have stated that he had “nothing to do with the collapse” in a Seoul district court. Shin has been indicted in South Korea on charges including fraud.
Hot Take: Terraform Labs and Do Kwon Seek Summary Judgment in SEC Case
Lawyers representing Terraform Labs and its co-founder Do Kwon are pushing for a summary judgment in the SEC case, arguing that they are not guilty of any wrongdoing. They claim that the SEC has been unable to provide evidence to support its allegations of offering and selling securities. This case centers around the collapse of algorithmic stablecoin Terra USD and raises questions about the regulatory oversight of such digital assets. As the legal battle continues, it remains to be seen how the court will rule and what implications this case may have for the broader crypto industry.
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