Terraform Labs Faces SEC Setback as Judge Deems UST & LUNA Securities
In a notable legal development, US District Judge Jed Saul Rakoff has granted summary judgment in favor of the Securities and Exchange Commission (SEC) in the case involving Terraform Labs and its CEO, Do Hyeong Kwon. The decision asserts that Terraform Labs breached US securities law by neglecting to register its digital assets, including UST and LUNA, as securities. This ruling represents a crucial juncture in the ongoing legal scrutiny surrounding the cryptocurrency industry. Judge Rakoff’s Verdict Presiding over the matter in the US District Court for the Southern District of New York, Judge Jed Rakoff affirmed the SEC’s contention that Terraform Labs, under the leadership of CEO Do Kwon, distributed and traded unregistered securities. While the court granted summary judgment to the SEC on this specific claim, it also acknowledged Terraform’s stance regarding matters related to offering and executing transactions in security-based swaps. In an order filed on De...
