SEC Rejects Terra Form’s Motion for Dismissal
The US Securities and Exchange Commission (SEC) has repeatedly denied Terraform Labs and its Co-founder Do Kwon’s motion to dismiss the lawsuit filed against them in February 2023.
The lawsuit alleged that the crypto firm had sold crypto asset securities to investors under false pretenses, 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 lacking transparency on their crypto asset securities.
The SEC 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, claiming that there is undisputed record evidence that the defendants violated the securities laws.
The US SEC has opposed all motions and non-motions by Terraform Labs and Do Kwon, putting forward seven filings in the Court. The regulator is determined to thwart all of Terraform’s attempts at legal autonomy while also working towards uncovering the truth behind alleged illegal crypto dealings and bringing the perpetrators to justice.
The conclusion of the lawsuit is expected to have a profound impact on the crypto space as the legal case between the two parties continues.
Ex SEC Official’s Predicts SEC Victory in Do Kwon Lawsuit
John Reed Stark, former Chief of the US SEC Office Of Internet Enforcement, publicly declared his expectations of the US SEC’s win in the legal battle between the two parties.
Stark stated, “Expect a Big Win for the SEC in the SEC/Terra Litigation and a Gracious (Yet Scathing) Rebuke of the Recent SEC/Ripple Decision,” citing securities law expert and US district Judge, Judge Jed S. Rakoff’s eagerness to diplomatically criticize the XRP ruling made by fellow Southern District Judge Analisa Torres in the XRP and SEC case.
Stark also mentioned, “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.”
### News source: bitcoinist.com