The U.S. Securities and Exchange Commission (SEC) has officially requested the Court to reject the defendants’ plea to dismiss the case, asserting that Terra and Do Kwon committed fraud and violated security laws.
In February of this year, the SEC filed a lawsuit accusing TerraLabs and Do Kwon of fraud and criminal wire charges. Terraform Labs promptly responded with a request to dismiss the lawsuit, labeling the SEC’s claims as baseless.
On November 7th, the SEC filed seven new charges in the District Court for the Southern District of New York, countering all motions and non-motions put forth by Terraform Labs (TFL) and Do Kwon.
The SEC is adamant in its stance, asking the Court to dismiss all of Terra and Do Kwon’s requests, including dismissing the lawsuit and their plea for summary judgment in their favor.
The SEC has also filed for summary judgment, strongly asserting that Do Kwon and Terraform Labs violated securities and exchange regulations, allegedly defrauding investors of $45 billion. They have provided uncontested record evidence to support these claims.
Previously, the SEC accused Do Kwon and Terraform of developing the Terra blockchain and associated securities for digital assets, promoting these assets as securities, and participating in public offerings like LUNA (now LUNC), wLUNA, and UST. Additionally, the defendants are accused of fraudulently offering LUNA and MIR via public trading platforms, misleading investors with false information regarding Chai, and de-pegging events in 2021 and 2022.
Despite significant recovery in the cryptocurrency market, the Terra ecosystem remains under pressure due to the ongoing lawsuit. Terra (LUNA) prices have seen a 6% increase this week and a 1% rise in the last 24 hours, with a 24-hour high of $0.48 and current trading at $0.474. USTC and Terra Classic (LUNC) are also trading close to resistance levels, at $0.012 and $0.000070, respectively, as the community hopes to return to January levels.