Terraform Labs and Do Kwon file motion to dismiss SEC lawsuit

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Terraform Labs claimed that the evidence provided by the SEC failed to substantiate the allegations in the lawsuit.

Recently, Terraform Labs and co-founder Do Kwon just submitted a petition to the federal court, asking the judge to dismiss the SEC’s lawsuit against Terraform Labs and Do Kwon for securities fraud.

Specifically, Terraform Labs argued that the SEC failed to prove that it was selling securities or engaging in fraudulent conduct. In particular, the evidence provided by the agency was frivolous and failed to prove the allegations in the lawsuit.

Additionally, Terraform Labs expressed concern that the SEC used an analysis conducted by a Rutgers University economics professor as the basis for its lawsuit because it was “conceptually and methodologically flawed.”

single SEC seeks dismissal of lawsuit

It’s unclear whether the motion filed with Judge Jed Rakoff of the Southern District of New York Court will be granted, but Terraform’s previous attempts to have the case dismissed were unsuccessful.

While Terraform Labs is facing litigation, the trial of Terraform Labs co-founder Daniel Shin also officially started in South Korea on October 30. Daniel Shin faces charges of illegal fundraising and violating capital markets laws.

However, Daniel Shin denied all the accusations against him and stated that Terra’s collapse was mainly due to Do Kwon’s mismanagement. Anchor Protocol managed by Do Kwon – a DeFi lending protocol that allows users to borrow and lend “unfair” UST.

In addition, Daniel Shin also defended himself, claiming that he had severed ties with Do Kwon in 2020. Therefore, the failure of the Terra ecosystem should not be blamed.

It is understood that Terraform Labs collapsed in May 2022 because the UST decoupling algorithm stablecoin caused its LUNA token to lose 99% of its value. The incident caused more than $60 billion in losses to investors and triggered lawsuits in many countries, including South Korea and the United States.

Revealing the mysterious investment fund that led to the Terra ‘disaster’ that led to the collapse of UST

As for Do Kwon, after a long period of hiding, Do Kwon was caught in Montenegro and arrested. serve sentence Sentenced to 4 months in prison for using a false passport.Show both United States and South Korea are seeking Do Kwon’s extradition.

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