BREAKING: Judge Issues Ruling In SEC V Terraform Labs Case
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December 28, 2023 7:07 pm
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A New York Court has issued several mixed rulings in the SEC case against Terraform Labs and founder Do Kwon.
Judge Jed Rakoff sided with the SEC over claims that Terraform Labs sold unregistered securities to investors, but sided with Terraform Labs on the charges relating to security-based swaps.
Additionally, the judge denied motions to fast-track the fraud charges from both Terraform Labs and the SEC.
ProCoin News previously reported that Terraform founder Do Kwon was set to be extradited to the United States from Montenegro to stand trial.
However, Kwon appealed, and his extradition will now be delayed pending a legal review by the courts. It remains to be seen if this recent ruling from Judge Rakoff influences the courts in Montenegro. Here are the latest breaking updates:
JUST IN: A U.S. COURT RULED TERRAFORM LABS AND DO KWAN BREACHED U.S. SECURITIES LAWS OVER THE UNREGISTERED OFFER AND SALE OF $LUNA AND $MIR TOKENS
— BSCN Headlines (@BSCNheadlines) December 28, 2023
"governance tokens are clearly securities but mAssets are not" was not exactly what i was expecting out of the sec v terraform labs summary judgement lol pic.twitter.com/ON8HI5ehg5
— Spreek (@spreekaway) December 28, 2023
Coin Telegraph reports:
According to court documents, the court granted summary judgment for the SEC on Count IV of the Amended Complaint, involving the defendants’ unregistered offers and sales of LUNA and MIR tokens in violation of Sections 5(a) and (5c) of the Securities Act.
Journalist Leo Schwartz asked: “In Judge Rakoff’s decision today finding that Terraform Labs sold unregistered securities, he argues that UST—ostensibly pegged to $1—was a security because it was offered in conjunction with Anchor Protocol, which offered a yield. Seems potentially bad for USDC?”
In Judge Rakoff's decision today finding that Terraform Labs sold unregistered securities, he argues that UST—ostensibly pegged to $1—was a security because it was offered in conjunction with Anchor Protocol, which offered a yield.
Seems potentially bad for USDC? pic.twitter.com/4Kn9aRhSl1
— Leo Schwartz (@leomschwartz) December 28, 2023
Crypto in the courts: the SEC v. Terraform Labs trial will go forward in late January – Judge Rakoff just docketed a 71-page order denying summary judgment on Counts I-III (but granting other things) – story on order, and Order, coming on https://t.co/mmos6LoVNy pic.twitter.com/ShuFkD6oqB
— Inner City Press (@innercitypress) December 28, 2023
The Block provided this statement from Judge Rakoff:
“There is no genuine dispute that UST, LUNA, wLUNA, and MIR are securities because they are investment contracts.”
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