Home Altcoins News Terra vs. SEC Lawsuit: Latest Court Developments Unveiled in Cryptocurrency Battle

Terra vs. SEC Lawsuit: Latest Court Developments Unveiled in Cryptocurrency Battle

Terra vs SEC

In the latest chapter of the ongoing legal tussle between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs, the courtroom drama takes center stage as Judge Jed S. Rakoff steers the proceedings towards summary judgment. The high-stakes battle between the regulatory body and the co-founder of Terra, Do Kwon, has reached a pivotal juncture, marked by hearings that could significantly impact the future of the Terra blockchain and related crypto assets.

Recent court filings reveal a significant stride in the SEC’s lawsuit against Terraform Labs and Do Kwon. Both parties have presented motions for summary judgment, underscoring the intensity of their legal confrontation.

Judge Rakoff’s courtroom, a stage for these high-stakes legal maneuvers, is set to witness crucial proceedings this week. A minute entry in the court’s filing hints at the progression of summary judgment proceedings and vital hearings that hold the potential to sway the outcome of this entangled legal battle.

A key element in these proceedings is the Daubert hearing, scheduled for Friday, offering an opportunity for both sides to scrutinize the challenged expert’s testimony openly. The aim? To assess its admissibility and potential impact on the case. Depending on the rulings emerging from this hearing, the deadline for summary judgment replies might extend to Monday, November 20, amplifying the suspense surrounding the case’s trajectory.

The SEC contends that Terraform Labs and Do Kwon were instrumental in the creation of the Terra blockchain and associated crypto asset securities. Notably, they allegedly marketed crypto assets such as LUNA (now LUNC), wLUNA, and UST as securities while engaging in the public offering of LUNA. Additionally, the SEC accuses the defendants of orchestrating the direct sale of LUNA and MIR into public trading markets, coupled with misleading practices that deceived investors regarding Chai and depegging events in 2021 and 2022.

In response, Terraform Labs and Do Kwon mounted a defense, seeking dismissal of the lawsuit. Their argument rests on the assertion that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and its mirrored assets (mAssets) do not fall under the category of securities. Moreover, they deny any evidence supporting the claim of transferring Bitcoin to a Swiss bank for personal gain.

The legal saga took a fresh turn as the SEC vehemently opposed the dismissal of the lawsuit. Persisting in its stance, the regulatory body continues to allege violations of security laws and fraud by Terra and Do Kwon, intensifying the legal tug-of-war.

In a high-stakes legal battle between Terraform Labs and the U.S. Securities and Exchange Commission (SEC), the courtroom drama intensifies as pivotal hearings and motions for summary judgment emerge as the focal points. Recent developments hint at a significant turn in this clash, impacting not just the involved parties but also the broader crypto market.

Amidst the legal showdown, the prices of Terra (LUNA) and Terra Classic (LUNC) experienced notable surges in recent days. The past 24 hours witnessed a 1% surge in LUNA’s price and a 2% rise in LUNC, triggering caution among investors eyeing the Terra ecosystem tokens amidst fluctuating market trends.

As the legal proceedings unfold, the crypto market remains watchful, anticipating the potential repercussions of this courtroom clash on the Terra ecosystem and its associated tokens.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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