In the ongoing lawsuit of Terraform Labs (TFL) and Do Kwon by the U.S. Securities and Exchange Commission (SEC), the SEC now requests the court to make a quick decision. Additionally, they argue that there’s clear evidence that TFL and Do Kwon broke exchange and security laws, causing investors to lose $45 billion.
The United States Securities and Exchange Commission filed a move for summary judgment in the case against Terra and Do Kwon in a court filing late on Nov 2.
According to the SEC, Terraform and Do Kwon initiated the Terra blockchain and related crypto assets. They promoted crypto assets like LUNA (now LUNC), wLUNA, and UST as securities and publicly offered LUNA.
Moreover, they put LUNA and MIR directly in the public trade markets. Plus, they gave false impressions to investors about Chai and 2021 and 2022’s de-pegging events.
SEC Pursues Terra & Do Kwon In Alleged Profit Scheme
When the record demonstrates that there is no genuine dispute over any significant fact and that the moving party is entitled to judgment as a matter of law, summary judgment is appropriate.
However, the SEC wants a quick decision on all its accusations. These include TFL and Do Kwon getting profits from Terra securities, selling these assets to customers, and performing unlawful actions. It is believed these profits were the outcome of business or management efforts.
In the past, Do Kwon and Terraform Labs requested the court to cancel the case. They stated that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and its mirrored assets (mAssets) are not financial resources. Also, there’s no proof that Bitcoin was sent to a Swiss bank for personal use.
The prices of Terra (LUNA) and Terra Classic (LUNC) dropped over 4% and 2%, respectively, on the last day. Given the recent downturn, investors are cautious about investing in Terra ecosystem tokens.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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