The United States Securities and Exchange Commission (SEC) has refuted the jury’s conclusion concerning Terraform Labs’ alleged violations and has demanded a summary judgment on all of the claims.
A courtroom filing from Oct. 27 confirmed the SEC’s reluctance to simply accept the jury’s leniency towards Do Kwon and his involvement in facilitating the frauds that finally led to the collapse of the Terra ecosystem. The submitting in the U.S. District Court for the Southern District of New York learn:
“No rational jury could conclude that Kwon was not liable for Terraform’s violations of Exchange Act Section 10(b) and Rule 10b-5 thereunder pursuant to Exchange Act Section 20(a).”
The “evidence” of violations supplied by the SEC factors to Kwon’s involvement in deceptive crypto traders by creating and advertising and marketing Terra and its in-house Terra (LUNA) tokens as securities.
On the identical day, Kwon and Terraform Labs asked the judge to toss the SEC’s lawsuit, arguing that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR) and its mirrored belongings (mAssets) should not securities because the SEC alleged.
However, the SEC maintains that Kwon and Terraform Labs supplied and bought securities, bought LUNA and MIR in unregistered transactions, engaged in transactions involving mAssets and dedicated fraud.
Related: Terraform co-founder Shin blames protocol for collapse during trial in S. Korea
While Terra co-founder Daniel Shin’s lawyer blamed the “unreasonable operation of the Anchor Protocol and external attacks carried out by Do-hyung Kwon” for the Terra ecosystem collapse, the corporate lately blamed market maker Citadel Securities for its position in an alleged “concerted, intentional effort” to trigger the depeg of its TerraUSD (UST) stablecoin in 2022.
Citadel Securities advised Cointelegraph in an announcement: “This frivolous motion is based on false social media posts and ignores information we already provided confirming we had no role whatsoever in this matter.”
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