Lawyers representing the United States Securities and Exchange Commission (SEC) and Terraform Labs, along with co-founder Do Kwon, recently clashed in court over allegations of fraud involving the LUNA token. The SEC claims that Terra and Kwon committed fraud, citing evidence provided by an anonymous whistleblower. However, Kwon’s legal team argued that the SEC was inconsistent in its stance on the depegging of TerraUSD (UST) from the U.S. dollar. The court proceedings took place in the U.S. District Court for the Southern District of New York, with Judge Jed Rakoff suggesting that sealed filings would lose their confidentiality if the case went to trial. Kwon, who was previously arrested for using falsified travel documents, could potentially face extradition to either the U.S. or South Korea. In addition to the SEC civil case, Kwon has been charged with eight criminal counts related to fraud at Terraform Labs. The SEC case against Terra and Kwon is expected to begin in January 2024 if motions for summary judgment are denied. Sentencing for former FTX CEO Sam Bankman-Fried is scheduled for March 2024, while the trial of former Celsius CEO Alex Mashinsky is anticipated to take place in September 2024 in the same district.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇲🇪 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Do Kwon, Alex Mashinsky, Judge Jed Rakoff, Sam Bankman-Fried |
| Companies | Terraform Labs, Inner City Press, United States Securities and Exchange Commission, U.S. District Court for the Southern District of New York, Jump Crypto |
| Currencies | Terra Luna Classic, TerraUSD |
| Securities | None |
