Do Kwon, Terraform Labs ask judge to dismiss SEC lawsuit
The post Do Kwon, Terraform Labs ask judge to dismiss SEC lawsuit appeared on BitcoinEthereumNews.com.
Terraform Labs and its co-founder, Do Kwon, filed a summary judgment motion requesting that the court throw out the U.S. Securities and Exchange Commission (SEC) case against them, claiming the regulator has failed to prove that the company or its founder did anything wrong. In an October 27 filing with the U.S. District Court for the Southern District of New York, Do Kwon and the now-defunct digital asset company he co-founded, Terraform Labs, requested that Judge Jed Rakoff throw out the SEC case against them “as a matter of law.” “After two years of investigation, the completion of a discovery period that resulted in the taking of more than 20 depositions, and the exchange of over two million pages of documents and data, the SEC is evidentiarily no closer to proving that the Defendants did anything wrong,” the lawyers wrote. “Evidence does not exist to support many of the SEC’s claims,” continued the filing. Terraform Labs collapsed in May 2022 when its TerraUSD (UST) algorithmic stablecoin lost its peg to the U.S. dollar after it was revealed that the company’s native token Luna was, in fact, propping it up. In its lawsuit against Kwon and Terraform, filed in February this year, the SEC accused the company and its founder of violating securities laws and orchestrating a “fraudulent scheme.” “From at least April 2018 through May 2022…Terraform and Kwon offered and sold crypto asset securities in unregistered transactions and perpetrated a fraudulent scheme that led to the loss of at least $40 billion of market value, including devastating losses for U.S. retail and institutional investors,” said the SEC. The regulator also accused the defendants of sending 10,000 BTC to a Swiss financial institution and withdrawing $100 million of customer funds, an accusation the company refuted in its latest motion. “The SEC knew this allegation was false when it filed this case,” argued…
Filed under: News - @ November 2, 2023 1:26 am