As you may remember, there was a major collapse in LUNA and cryptocurrencies when UST, the stablecoin of the Terra (LUNA) ecosystem, lost its stability to 1 dollar.
After this collapse, many investigations were opened against Terraform Labs and its founder Do Kwon. Do Kwon, for whom an arrest warrant was issued, was caught in Montenegro after running away for a long time.
One of the lawsuits filed against Terraform Labs (TFL) and its founder Do Kwon was filed by the US Securities and Exchange Commission (SEC).
There has been a new development in this case. According to Cointelegraph, the SEC requested summary judgment from the court in the Terraform Labs case.
In addition to alleging that Terraform Labs and Do Kwon sold securities in this case, the SEC also alleges that Terraform and Kwon committed fraud. In addition to these allegations, the SEC also claims that TFL and Kwon also spread misleading information.
At this point, the SEC argues that this evidence is indisputably clear, stating that there is evidence that Do Kwon and TFL defrauded investors of $45 billion in violation of securities and exchange laws.
“If the records and evidence are clear and unambiguous regarding any material fact, then summary judgment is appropriate.”
The SEC also reacted to the jury's treatment of Do Kwon and the jury's reluctance to acknowledge Do Kwon's role in facilitating the frauds that led to the bankruptcy of Terraform Labs.
“No rational jury could conclude that Do Kwon was not liable for Terraform's violations of the law under Section 20(a) of the Exchange Act,” the SEC said in its motion for summary judgment. said.
Additionally, Terraform Labs and Do Kwon had asked the judge to dismiss the SEC's case, arguing that Terra Classic (LUNC), TerraClassicUSD (USTC), and Mirror Protocol (MIR) were not securities as the SEC claimed.
*This is not investment advice.