In the case of Terra and Do Kwon versus the SEC, Judge Rakoff has provided the jury with instructions regarding the key disputes in the fraud case.
In a recent conflict between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs, the judge scolded both defendants and plaintiff’s attorneys for posing irrelevant questions in court. Additionally, the judge briefed the jury on essential details of the fraud case.
Overview of SEC Lawsuit Against Terraform Labs and Do Kwon
Jury Trial Initiation: As the lawsuit proceeded to a jury trial, Judge Rakoff provided the jury with a brief summary of the US SEC’s lawsuit against Terraform Labs and Do Kwon. Additionally, both the SEC and Terraform Labs (TFL) participated in a final pretrial conference to address disputes between the parties.
Preliminary Jury Instructions: In the initial jury instructions, Judge Rakoff outlined the major issues in the case. He mentioned that more detailed legal instructions would follow once all evidence and closing arguments were presented by both parties.
SEC Allegations: The primary argument put forth by the US SEC is that Terraform Labs and Do Kwon violated federal securities laws by engaging in two fraudulent schemes related to the purchase or sale of Terraform securities, including LUNA and UST (now USTC).
Fraudulent Claims: Judge Rakoff highlighted the SEC’s allegations, including false claims made by Terraform to investors regarding Chai Corp, a company founded by a Terra co-founder. The SEC asserts that Chai Corp never utilized Terraform’s technology as claimed.
UST Stablecoin Scheme: Another fraud scheme outlined by the SEC involves the UST stablecoin. Terraform is accused of falsely representing to investors that the UST market value would always adjust automatically to $1.00, pegged to the US dollar.
Jury Deliberation: Currently, the jury is deliberating on the preliminary instructions before the final instruction is presented. The judge clarified the SEC’s allegations and the defendants’ denial of making any false statements.
Terra and Terra Classic Prices Experience Volatility
Following the release of Terra co-founder Do Kwon from prison by the Montenegro Supreme Court, both Terra (LUNA) and Terra Classic (LUNC) prices surged over 20%. However, profit booking and a market-wide selloff have led to a correction in prices.
LUNA’s price has experienced a significant 12% decline in the past 24 hours, following a remarkable 70% rally over the course of a week. Currently trading at $1.13, LUNA’s 24-hour low and high are recorded at $1.12 and $1.30, respectively. Moreover, there has been a 30% decrease in trading volume, indicating waning interest among traders.
Similarly, the price of Terra Classic (LUNC) has fallen by 7% in the last 24 hours, with the current trading price at $0.000154. The 24-hour high and low for LUNC are $0.000154 and $0.000170, respectively. Additionally, trading volume has also decreased by 30% during the same period.
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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