The SEC Seeks Summary Judgment in Lawsuit Against Terraform Labs and Do Kwon
The Securities and Exchange Commission (SEC) has requested a New York judge to make a decision in its lawsuit against Terraform Labs and its co-founder Do Kwon without going through a full trial. The SEC filed a motion for summary judgment, stating that the evidence clearly establishes the defendants’ violations. They argue that the court should grant summary judgment in the SEC’s favor.
The SEC accuses Terraform and Kwon of orchestrating a fraudulent scheme that resulted in $45 billion in market losses, including significant losses for U.S. investors. They also allege that the defendants engaged in unregistered public offerings of their crypto asset securities by distributing LUNA and MIR to intermediaries who resold them to U.S. investors.
Mired in Legal Troubles
In February, the SEC sued Kwon and Terraform, claiming that the company raised billions from investors through unregistered transactions involving crypto asset securities. In June, Kwon was found guilty by a court in Montenegro for using a fake passport while attempting to leave the country. Additionally, Terraform co-founder Daniel Shin is currently on trial in South Korea on charges including fraud. South Korean prosecutors have indicted Shin and nine others for violations of capital markets law.
Hot Take: SEC Pushes for Summary Judgment in Terraform Labs Lawsuit
The Securities and Exchange Commission is seeking summary judgment in its lawsuit against Terraform Labs and Do Kwon. They argue that the evidence clearly shows the defendants’ violations, leading to significant market losses. If granted, this judgment would save time and resources by avoiding a full trial. The outcome of this case will have implications for the regulation of crypto asset securities and unregistered offerings. As Terraform and its co-founder face legal troubles in multiple jurisdictions, the crypto industry is closely watching the developments in these lawsuits.
By
By
By
By
By