The U.S. Securities and Exchange Commission (SEC) is urging a Manhattan judge to deliver summary judgment in its legal battle with Terraform Labs and its co-founder, Do Kwon. The SEC claims that Kwon violated securities laws in the distribution of the Terra blockchain’s native cryptocurrency, LUNA, and its stablecoin TerraUSD (UST). According to the SEC, Kwon and Terraform engaged in fraudulent activities, including falsely claiming partnerships and conducting fake transactions to make the network appear more active. Kwon also allegedly lied to investors about the stability of UST and engaged in secret deals to manipulate its value. The SEC also accuses the defendants of issuing LUNA and MIR to investors without registering their sales with the agency. The SEC argues that the defendants marketed these crypto assets as investments that would increase in value based on the efforts of the Terra blockchain. The SEC’s request for summary judgment comes after its failed attempt to label XRP as a security.
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 | negative |
| Relevance Score | 1 |
| People | Do Kwon |
| Companies | Terraform Labs, Luna Foundation Guard, SEC, Chai |
| Currencies | Terra Luna Classic, Bitcoin, TerraUSD |
| Securities | None |
