1 year ago
Terraform Labs and its co-founder, Do Kwon, are asking a national justice to broadside with them successful the U.S. Securities and Exchange Commission (SEC) fraud case, arguing that the regulator hasn't managed to beryllium the crypto institution was offering securities.
"After 2 years of investigation, the completion of a find play that resulted successful the taking of much than 20 depositions, and the speech of implicit 2 cardinal pages of documents and data, the SEC is evidentiarily nary person to proving that the defendants did thing wrong," Terraform contended successful its motion for summary judgment – a ceremonial petition to Judge Jed Rakoff of the U.S. District Court for the Southern District of New York that helium determine the SEC hasn't sufficiently demonstrated its lawsuit to warrant a trial.
The $40 cardinal catastrophe astatine stablecoin issuer Terraform successful 2022 marked a large archetypal domino successful a bid of salient crypto firms going under, and the institution is present 1 of respective crypto businesses presently warring with the bureau implicit halfway questions underpinning the integer assets industry. After the company's TerraUSD stablecoin (UST) and its Luna cryptocurrency collapsed, it faced SEC accusations that the institution and Kwon sold unregistered securities successful a monolithic fraud that outgo investors billions.
The steadfast is besides asking the tribunal to flip retired the views of experts the SEC enlisted to marque its case, including the "conceptually flawed" investigation of a Rutgers University professor.
An earlier effort to get the lawsuit dismissed outright was rejected by the court, with Rakoff noting the SEC made a "plausible claim" that Terraform had offered concern contracts, meaning the lawsuit would correctly person been wrong the scope of the agency's securities enforcement jurisdiction.
Spokespeople for the SEC didn't instantly respond to a petition for remark connected the latest filings.
Kwon has asked the aforesaid tribunal to reject the SEC's petition to question him successful the U.S. astir the catastrophic clang of his company's tokens. Kwon's lawyers are opposing immoderate accidental for the stablecoin creator to connection testimony, arguing that it would beryllium "impossible" to bring Kwon to the U.S. due to the fact that helium remains detained successful Montenegro. Both South Korean and U.S. authorities person requested his extradition.
Edited by Kevin Reynolds.
English (US) 