Lawyers representing Terraform Labs and its co-founder Do Kwon have requested summary judgment from a New York judge in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
This move could potentially prevent that case from progressing to a full trial.
The SEC previously reported in February that Terraform Labs’ algorithmic stablecoin specifically crashed in May 2022. Terra USD (UST) named to cryptocurrency filed a criminal complaint alleging that he offered or sold securities by reference to However, attorneys for Terraform Labs and Kwon argue that the SEC did not provide sufficient evidence to support these claims.
Despite two years of investigation, more than 20 depositions, and more than two million pages of documents and data exchanged, attorneys claim the SEC has come no closer to proving any wrongdoing by Terraform Labs or Kwon. “The SEC has clearly failed to prove that the defendants did anything wrong,” the attorneys said.
Southern District of New York Judge Jed Rakoff, who is presiding over the case, had previously rejected Terraform Labs and Kwon’s attempt to dismiss the case.
Lawyers also criticized the SEC’s allegations that Terraform Labs and Kwon secretly moved millions of dollars into Swiss bank accounts for personal gain. They called it “a clear attempt to make this case look like FTX, Celsius, and other cases involving the theft of customer funds.”
*This is not investment advice.
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