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Lawyers representing Terraform Labs and its co-founder, Do Kwon, have recently approached a New York judge with a bold request. They’re seeking a summary judgment, aiming to bring the ongoing legal battle with the Securities and Exchange Commission (SEC) to a swift conclusion. This move could prevent the case from progressing to a full-blown trial.
Unraveling the SEC’s Claims
In February, the SEC launched a legal offensive against Kwon and Terraform Labs. The regulatory body accused the company of raising billions from investors through the “offering and selling of an interconnected suite of crypto asset securities,” many of which were allegedly unregistered transactions. Central to the SEC’s argument was the infamous algorithmic stablecoin, Terra USD, which experienced a catastrophic collapse in May 2022.
In their quest for a summary judgment, Terraform Labs and Kwon’s legal team have boldly stated that the SEC has fallen short in its mission to prove any wrongdoing.
“After two years of investigation, numerous depositions, and the exchange of millions of pages of documents and data, the SEC is no closer to proving that the Defendants did anything wrong,” the lawyers emphasized.
Moreover, they firmly rejected the SEC’s claims surrounding transferring 10,000 Bitcoin into Swiss bank accounts for personal gain. Significantly, drawing a comparison, the lawyers highlighted that the SEC attempts to create parallels between this case and other high-profile cases involving customer fund thefts, a narrative they vehemently deny.
Looking Forward
Despite these strong assertions, Judge Jed Rakoff, who is at the helm of this case in the Southern District of New York, has previously denied Terraform Labs and Kwon’s motion to dismiss the case. Hence, the stage is set for a continued legal showdown.
Meanwhile, in a Seoul district court, lawyers for Terraform Labs co-founder Daniel Shin are asserting his innocence concerning the Terra USD collapse. In April, Shin faced an indictment on several charges, including fraud. With the legal drama unfolding on multiple fronts, all eyes are now on how these complex cases will unravel in the coming days.
Read Also: Is Terra Co-Founder Do Kwon Coming To US? SEC Files Motion In Court
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