Breaking news, the Judge has ruled that the SEC's lawsuit against Do Kwon and Terra developer Terraform Labs should continue.
To recall the previous details of the lawsuit, Terraform and Kwon orchestrated a multi-billion dollar crypto-asset securities scam involving an algorithmic stablecoin and other crypto-asset securities, according to the SEC.
They allegedly raise billions of dollars from investors by offering and selling an interconnected suite of crypto-asset securities, many in unregistered transactions.
These include “mAssets”, security-based swaps designed to generate returns by reflecting the price of U.S. companies' stocks, and the so-called “algorithmic stablecoin”, which allegedly retains its reliance on the U.S. dollar because the defendants can be exchanged for another crypto-asset security, LUNA. Terra USD (UST), a crypto-asset security.
SEC chairman Gary Gensler had this to say about the lawsuit filed in February:
“We contend that Terraform and Do Kwon have failed to make public the full, fair and accurate disclosure required for a range of crypto-asset securities, primarily LUNA and Terra USD.
We also argue that they are committing fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.”
In the SEC and Terraform Labs case, the judge rejected the ruling in the XRP case, stating that buyers of tokens from exchanges have the same relationship between the token issuer and the token issuer and initial buyers.
*Not investment advice.