Court for the Southern District of New York got up on the side of the US Securities and Exchange Commission (SEC) in a lawsuit against Terraform Labs (TFL) and its founder Do Kwon.
In summary judgment, Judge Jed Rakoff found that the company offered and sold unregistered securities in the form of UST, LUNA, wLUNA and MIR. In his opinion, the defendants were unable to provide evidence against it, and MIR tokens “passed the Howey test with honor.”
However, the fraud claim will be tried by a jury—both sides’ motions for summary judgment were denied. The first meeting will take place on January 24, 2024.
In addition to the United States, the South Korean authorities also filed claims against Kwon. The charges include, but are not limited to, violations of capital markets laws.
On March 23, Montenegro police arrested Kwon and former Terraform Labs chief financial officer Han Chang-jung while attempting to fly from Podgorica Airport to Dubai using false passports.
The former head of TFL was placed under house arrest, and in June he was sentenced to four months in prison for forgery of documents.
Let us remind you that in November the High Court of Montenegro approved the extradition of Kwon to the United States or South Korea, but a month later the appeal court overturned the decision.
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2023-12-29 15:38:19
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