Batik cryptocurrency ecosystem Terra (Luna) lawyers for founder Do Kwon, from the judge, the SEC’s last year TerraUSD and LUNA asked him to dismiss his lawsuit accusing him of fraud in connection with the $40 billion collapse of cryptocurrencies.
Friday’s statement indicates that Kwon will continue to plead not guilty in the face of increasing legal pressure.
His home country, South Korea, issued an arrest warrant for Kwon in September, and US prosecutors indicted Kwon on fraud charges in March.
Kwon has not formally responded to the fraudulent charges in Montenegro or the criminal charges in the United States, which are similar to the SEC’s charges in the civil suit.
Do Kwon Argues SEC Has No Power To Sue Terra
Kwon’s lawyers said Friday that the SEC does not have the authority to sue because he did not market his cryptocurrencies directly to Americans. They also said that neither TerraUSD, a stablecoin designed to hold the $1 value, nor LUNA, are SEC-regulated securities.
“UST is a currency, not a security,” the statement said, referring to TerraUSD with the abbreviation symbol.
Kwon’s lawyers also contested the SEC’s claim that Kwon lied about the connection between the Terra blockchain, the technology underlying TerraUSD, and Chai, a South Korean payment application.
The SEC filed a lawsuit in February, accusing Kwon of saying on several occasions that transactions in Chai were handled using Terra stablecoins.
*Not investment advice.
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