The lawsuit continues after the collapse of TerraUSD, which caused a huge drop in the crypto money industry last year.
The lawsuit continues after the arrest of Terraform Labs founder Do Kwon. Do Kwon was arrested in Montenegro in recent months.
Do Kwon’s Judgment Continues
Do Kwon’s lawyers denied the fraud allegations made by the SEC. Lawyers claimed that the SEC failed to substantiate Terra’s claim that US investors were defrauded in connection with the $40 billion collapse of TerraUSD (UST) and Luna (LUNA). The SEC sued Kwon for allegedly defrauding US investors by illegally offering unregistered securities.
Do Kwon’s lawyers asked the judge to dismiss the SEC’s case filing alleging their purchase was unfounded. They argued that US law prohibits regulators from “using federal securities law to provide jurisdiction over digital assets in this case.”
Also, lawyers claimed that the SEC failed to prove that Kwon defrauded US investors in connection with Terra’s $40 billion collapse of TerraUSD (UST) and Luna. According to lawyers, the stablecoin in question is a currency, not a security.
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