The post Where things stand: The SEC vs Do Kwon and Terraform Labs appeared on BitcoinEthereumNews.com.

Terraform Labs and former CEO Do Kwon remain locked in a legal battle with the US Securities and Exchange Commission over the now-infamous depeg and collapse of the stablecoin UST. The lawsuit was filed back in February, less than a year after the depegging triggered a domino effect for crypto firms. UST’s collapse led to multiple bankruptcies and exposed the weaknesses within FTX’s now-failed exchange empire.  Yet — as evidenced by the trial of former FTX CEO Sam Bankman-Fried — both FTX and Alameda were in trouble prior to the depegging. The SEC’s lawsuit isn’t the only one that Kwon faces. Kwon was indicted in March by a grand jury on fraud charges — including wire fraud, securities fraud and commodities fraud. South Korean authorities also issued a warrant for his arrest in October of last year. Kwon faces possible extradition to either the US or South Korea after fulfilling a four-month sentence in Montenegro. The Terraform Labs founder was denied an appeal by the Montenegrin high court following a March arrest for forging travel documentation. Read more: Jump Crypto president pleads the Fifth when asked about alleged Do Kwon bribe Both the SEC and Terraform have filed motions seeking a summary judgment, which would avoid the case proceeding to a full trial. The motions come after an October deadline for discovery, or the process of obtaining information ahead of a trial. In the SEC’s motion, the regulator claimed that Terraform and Kwon “struck a secret side-deal with a third party to push UST back up to $1, in exchange for selling that party LUNA at dramatically reduced prices.” The name of the third-party was redacted from the public filing. The SEC also claimed that Terraform offered unregistered securities, a claim the regulatory agency has made against other crypto companies,…

---

Filed under: News - @ November 24, 2023 3:26 pm