In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs (TFL) and Do Kwon, the SEC has asked the court for summary judgment. The SEC argues there is undisputed record evidence that Do Kwon and TFL violated securities and exchange laws, defrauding investors of $45 billion.
The U.S. Securities and Exchange Commission filed a motion for summary judgment in the lawsuit against Terra and Do Kwon.
The SEC argues that Terraform and Do Kwon created the Terra blockchain and related crypto asset securities, marketed crypto assets such as LUNA (now LUNC), wLUNA, and UST as securities, and engaged in the public offering of LUNA. In addition, the defendants sold LUNA and MIR directly into public trading markets, while misleading and deceiving investors about Chai and depegging events in 2021 and 2022.
The SEC seeks summary judgment on all its claims including TFL and Do Kwon sold securities, purchasers of these Terra securities invested in common enterprise, strict vertical commonality, reasonable expectation of profits derived from the entrepreneurial or managerial efforts, and defendants committed fraud.