Arguing that almost all cryptocurrencies are securities, the SEC is suing projects and platforms that do not comply with securities laws at this point.
One of the projects that the SEC sued was Terra (LUNA), which caused huge losses to investors.
Accordingly, the SEC has filed a lawsuit against Terraform Labs (TFL) and its former CEO, Do Kwon, alleging that UST, Terra (LUNA), wLUNA, MIR are securities and that Terra sold tokens in security status to US customers without registering with it.
As the SEC's lawsuit against Terra and Do Kwon continues, Terraform Labs and Kwon cite Judge Torres' XRP ruling as a precedent for dismissing the SEC's lawsuit.
Lawyers from TFL and Dentons, the law firm representing Do Kwon, who submitted additional documents to the court, claimed that the XRP decision directly affected the case against Terra and Kwon.
At this point, the lawyers stated that the court's decision that the sale of XRP in the secondary markets, that is, on the exchanges, is not a security, will also be applied to the Terra case, and the SEC's claim that “Terra sells LUNA and MIR in the secondary markets” was in vain.
Because lawyers think that the sale of Terra and MIR in the secondary markets should not be considered as securities, as in the XRP decision.
The lawyers also emphasized that the corporate sales of LUNA and MIR are not resales, adding that a South Korean court has ruled that LUNA is not a security, further strengthening Terraform Labs' hand in the SEC case.
