Terraform Labs co-founder Do Kwon and his legal team have requested a United States district judge to dismiss the securities and fraud suit filed by the federal securities regulator. They argue that the Securities and Exchange Commission (SEC) has failed to provide evidence of any wrongdoing. Kwon and Terraform assert that their cryptocurrencies, including Terra Luna Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and Mirrored Assets (mAssets), are not securities as alleged by the SEC. The lawyers claim that the SEC’s allegations lack supporting evidence and even suggest that the regulator knew some of its claims were false. One specific allegation disputed by Kwon’s lawyers is that he and Terraform secretly moved millions into Swiss bank accounts for personal gain. The collapse of the $40 billion Terra ecosystem in May 2022, following the loss of the USTC stablecoin’s U.S. dollar peg, is also mentioned. Kwon and Terraform have attempted to exclude the opinion of the SEC’s experts, including a report from Rutgers University economics professor Bruce Mizrach, which they deem unreliable. Judge Jed Rakoff, overseeing the case, has previously denied Terraform’s attempt to dismiss the lawsuit. Kwon, who is currently detained in Montenegro, has also requested the court to reject the SEC’s motion to extradite and interview him in the U.S.

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Information	Details
Geography	North America
Countries	🇺🇸 🇨🇭 🇲🇪
Sentiment	negative
Relevance Score	1
People	Jed Rakoff, Do Kwon
Companies	Judge Jed Rakoff, Terra ecosystem, United States district judge, Montenegro, Securities and Exchange Commission, Terraform Labs, New York District Court, Rutgers University, Swiss bank, federal securities regulator
Currencies	iAssets, Terra Luna Classic, Bitcoin, TerraClassicUSD, Mirror Protocol
Securities	None