Lawyers representing Terraform Labs and its co-founder, Do Kwon, have recently approached a New York judge with a bold request. They’re seeking a summary judgment, aiming to bring the ongoing legal battle with the Securities and Exchange Commission (SEC) to a swift conclusion.
In February, the SEC launched a legal offensive against Kwon and Terraform Labs. The regulatory body accused the company of raising billions from investors through the “offering and selling of an interconnected suite of crypto asset securities,” many of which were allegedly unregistered transactions. Central to the SEC’s argument was the infamous algorithmic stablecoin, Terra USD, which experienced a catastrophic collapse in May 2022
In their quest for a summary judgment, Terraform Labs and Kwon’s legal team have boldly stated that the SEC has fallen short in its mission to prove any wrongdoing.
Moreover, they firmly rejected the SEC’s claims surrounding transferring 10,000 Bitcoin into Swiss bank accounts for personal gain. Significantly, drawing a comparison, the lawyers highlighted that the SEC attempts to create parallels between this case and other high-profile cases involving customer fund thefts, a narrative they vehemently deny.
Despite these strong assertions, Judge Jed Rakoff, who is at the helm of this case in the Southern District of New York, has previously denied Terraform Labs and Kwon’s motion to dismiss the case. Hence, the stage is set for a continued legal showdown.
In April, Shin faced an indictment on several charges, including fraud. With the legal drama unfolding on multiple fronts, all eyes are now on how these complex cases will unravel in the coming days.