In a significant development in the ongoing lawsuit involving Terraform Labs (Terra) and its co-founder, Do Kwon, a federal judge has upheld multiple key decisions in favor of the U.S. Securities and Exchange Commission (SEC). The judge’s decision confirms that Terra and Do Kwon violated the Securities Act, marking a significant step in a case that has attracted widespread attention in the crypto community.
Federal Judge Jed S. Rakoff, in a decision issued on January 11, rejected motions for reconsideration filed by Terraform Labs and Do Kwon. These motions aimed to challenge the court’s previous rulings, including the opinions of expert witnesses Raj Unny and Dr. Matthew Edman. However, the court found the reasons presented by the SEC in response to these motions valid and in line with federal regulations.
The allegations against Do Kwon are rooted in fraud and their connection to the decline of TerraUSD (UST) and LUNA tokens. This event, which unfolded in May 2022, marked a pivotal moment for the Terra crypto project as it plummeted, causing an astonishing $60 billion loss within the crypto community.
In late November, the highest court in Podgorica approved the extradition of Do Kwon, responding to requests from both South Korean and American authorities. This decision paves the way for him to potentially face legal proceedings in the United States.
Following the SEC’s partial victory in the Terra lawsuit, the regulatory agency has taken the opportunity to file a notice of supplemental authority in ongoing lawsuits involving major cryptocurrency exchanges, including Binance and Coinbase. The SEC believes that the Terra ruling sets a precedent for addressing security violations in these cases and has urged the court to consider the judgments made in the Terra lawsuit.
Despite these significant legal developments, the price of Terra (LUNcC) has shown a response, continuing its upward trajectory. As of the time of writing, LUNC was trading at $0.0001307, marking only a marginal increase of 2% over the past 24 hours.
This unflinching market reaction underscores the complex legal proceedings surrounding Terraform Labs and Do Kwon. Investors and the broader crypto community remain cautious as uncertainty looms over the outcome of this high-stakes legal battle.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Matthew Edman, Do Kwon, Raj Unny, Jed S. Rakoff |
| Companies | Terraform Labs, U.S. Securities and Exchange Commission, Crypto News Flash, Coinbase, Binance |
| Currencies | Terra, TerraClassicUSD |
| Securities | None |
