In the ongoing legal battle between the US SEC and Terraform Labs, the regulator has declared its decision to deny the latter’s motion for the dismissal of the lawsuit.
SEC Denies Terra Form’s Dismissal Request
The US Securities and Exchange Commission (SEC) has continuously denied TerraformLabs and its Co-founder Do Kwon Do’s motion to dismiss the lawsuit the regulator filed against it in February 2023.
The regulator alleged that the crypto firm had sold crypto asset securities to investors potentially deceiving people by claiming the tokens would increase in value and provide more gains. According to the SEC, Terraform Labs should be found guilty of misleading the public with false information and not providing complete transparency on their crypto asset securities.
The SEC has formally submitted a request to the District Court for the Southern District of New York to dismiss all pleas and requests sent by Terra and Do Kwon to the US district judge to dismiss the lawsuit. The regulatory body has claimed there is undisputed record evidence that Do Kwon and Terraform have violated the securities laws.
As such, the US SEC has put forward seven filings in the Court and all memorandums completely oppose motions and non-motions by the two defendants, Do Kwon and Terraform. The regulator is seemingly determined to thwart all of Terraform’s attempts at legal autonomy, while also working towards uncovering the truth behind alleged illegal crypto dealings within Terraform and bringing the perpetrators to justice.
As the legal case between the two parties continues, it is expected that the conclusion of the lawsuit will have a profound impact on the crypto space.
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Ex SEC Official Predicts Regulator’s Victory In Do Kwon Lawsuit
Former Chief of the US SEC Office Of Internet Enforcement, John Reed Stark has publicly declared expectations of the US SEC’s win in the legal battle between two.
“Expect a Big Win for the SEC in the SEC/Terra Litigation and a Gracious (Yet Scathing) Rebuke of the Recent SEC/Ripple Decision,” Stark stated.
The former SEC official’s prediction is based on the belief that securities law expert and US district Judge, Judge Jed S. Rakoff was eagerly waiting for the opportunity to diplomatically criticize the XRP ruling made by fellow Southern District Judge Analisa Torres in the XRP and SEC case.
“The US Securities and Exchange Commission (SEC) and crypto developer Terraform Labs have now filed dueling summary judgment motions, each seeking an early victory about whether crypto tokens are securities,” Stark stated.