The SEC claimed that Terraform Labs and Kwon “orchestrated a multi-billion-dollar fraud involving the development, marketing, and sale of various cryptocurrencies,” according to court documents.
A United States federal judge has ruled in favor of the Securities and Exchange Commission (SEC) on claims that Terraform Labs and its former CEO, Do Kwon, offered and sold unregistered securities.
The court granted summary judgment in favor of the SEC, which alleged that Terraform Labs and Kwon offered and sold LUNA, UST and MIR unregistered securities, District Court Judge Jed Rakoff stated in a Dec. 28 filing.
Judge Rakoff however granted summary judgment for the defendants over the alleged unregistered offer and sale of security-based swaps.
