SEC Declines Dismissal of Lawsuit Targeting Terra and Do Kwon

Terra Classic Do Kwon
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The U.S. Securities and Exchange Commission (SEC) has formally asked the Court to deny the defendants’ motion to dismiss the lawsuit, alleging fraud and securities law violations by Terra and Do Kwon.

Back in February, the SEC initiated legal action, accusing TerraLabs and Do Kwon of both fraud and criminal wire charges. Terraform Labs quickly countered with a motion to dismiss the lawsuit, characterizing the SEC’s claims as unfounded.

SEC Files New Charges in Terra and Do Kwon Case

On November 7th, the SEC introduced seven additional charges in the District Court for the Southern District of New York, countering all motions and non-motions submitted by Terraform Labs (TFL) and Do Kwon.

The SEC remains steadfast in its position, urging the Court to dismiss all of Terra and Do Kwon’s requests, which include the dismissal of the lawsuit and their plea for summary judgment in their favor.

Furthermore, the SEC has filed for summary judgment, emphatically asserting that Do Kwon and Terraform Labs violated securities and exchange regulations, allegedly defrauding investors of $45 billion. To support these allegations, they have presented uncontested record evidence.

Previously, the SEC accused Do Kwon and Terraform of developing the Terra blockchain and associated digital asset securities, promoting them as securities, and engaging in public offerings such as LUNA (now LUNC), wLUNA, and UST. Additionally, the defendants are alleged to have fraudulently offered LUNA and MIR through public trading platforms, misleading investors with false information about Chai, and events involving de-pegging in 2021 and 2022.

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Despite notable cryptocurrency market recovery, the Terra ecosystem continues to face pressure due to the ongoing lawsuit. Terra (LUNA) prices have shown 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 near resistance levels, at $0.012 and $0.000070, respectively, as the community looks toward a return to January levels.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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