Terraform Labs and Do Kwon Pursue Summary Judgment in SEC Case

Terraform Labs and Do Kwon Seek Summary Judgment in SEC Case

Lawyers representing Terraform Labs and its co-founder, Do Kwon, have approached a New York judge with a request for a summary judgment in their ongoing legal battle with the Securities and Exchange Commission (SEC). This move aims to bring the case to a swift conclusion without going to trial.

SEC’s Claims Against Terraform Labs

In February, the SEC accused Terraform Labs of raising billions from investors through unregistered transactions involving crypto asset securities. The SEC’s argument focused on the collapse of the algorithmic stablecoin, Terra USD, in May 2022.

Terraform Labs and Kwon’s legal team argue that the SEC has failed to prove any wrongdoing after two years of investigation, depositions, and document exchanges. They also reject the SEC’s claims regarding transferring Bitcoin into Swiss bank accounts for personal gain.

Judge Denies Motion to Dismiss

Despite their assertions, Judge Jed Rakoff previously denied Terraform Labs and Kwon’s motion to dismiss the case. This sets the stage for a continued legal showdown in the Southern District of New York.

In a separate court in Seoul, lawyers for Terraform Labs co-founder Daniel Shin are asserting his innocence regarding the Terra USD collapse. With multiple complex cases unfolding, all eyes are on how these legal battles will unfold in the coming days.

Hot Take: Continuing Legal Battle Between Terraform Labs and SEC

The legal battle between Terraform Labs and the SEC continues as lawyers representing the company and its co-founder seek a summary judgment to expedite the resolution of the case. The SEC has accused Terraform Labs of engaging in unregistered transactions involving crypto asset securities and points to the collapse of the Terra USD stablecoin as evidence.

Terraform Labs and its legal team argue that the SEC has failed to provide sufficient evidence of wrongdoing and reject claims of personal gain through Bitcoin transfers. Despite a previous motion to dismiss being denied, the case is set to proceed in court.

Meanwhile, in a separate court case in Seoul, lawyers for Terraform Labs co-founder Daniel Shin assert his innocence regarding the Terra USD collapse. As these complex cases unfold, the outcome remains uncertain.