SEC clashes with Do Kwon and Terraform Labs in court

U.S. Securities and Exchange Commission (SEC) files summary judgment motion against Terraform Labs and Do Kwon

On November 2, 2023, the U.S. Securities and Exchange Commission (U.S. Securities and Exchange Commission) is advancing its case in the ongoing Terra litigation by filing a motion for summary judgment.

The regulator claimed to have “indisputable” evidence of alleged violations by former Terraform Labs CEO Do Kwon and the company itself.

“Terraform and Kwon orchestrated a fraudulent scheme that ultimately resulted in $45 billion in market losses, including heavy losses to U.S. investors,” the SEC filing said.

The SEC’s motion for summary judgment further stated:

“The defendant fabricated Blockchain Terra creates the appearance of transactions on the blockchain that do not exist in the real world.

They lied to investors about their supposed stability Stablecoin Terraform, while concealing secret agreements the defendants had with third parties to “save assets from collapse.”

U.S. regulators believe the case targets Terraform Labs and its former CEO. SEC documents emphasize:

“No reasonable jury could conclude that Kwon was not liable for Terraform’s violations.”

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Lawyers for Terraform Labs and Kwon previously filed a summary judgment motion in an attempt to quickly dismiss the case.

Despite a two-year investigation that included extensive discovery, the SEC allegedly made no progress in proving any wrongdoing by Mr. Kwon or the defendants, the defense motion said.

Attorneys for the defendants argued that even after a thorough investigation, the evidence presented by the SEC against the defendants remained unchanged.

lawyers U.S. Securities and Exchange Commission disagreed with that argument and said: “Kwon and Terraform subsequently engaged in a scheme to deceive the public regarding the use and stability of these crypto-asset securities.”

The SEC alleges that startups Terraform Labs and Kwon sold unregistered securities and executed false unregistered and fraudulent blockchain transactions to commit fraud.

Prosecutors argued that the defendants simultaneously “cashed” large amounts of fiat currency.

information Bitcoin Synthetic.