Do Kwon and Terraform Labs’ lawyers urge judge to nix SEC’s allegations

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By BitcoinWiki News

Key Takeaways:

  • Lawyers representing Terraform Labs and co-founder Do Kwon asked a NY judge to make a decision in SEC case without full trial.
  • Lawyers argued that SEC could not prove the offering or selling of securities, despite agency’s complaint.
  • Terra USD, an algorithmic stablecoin, collapsed in May 2022, referenced in SEC complaint.
  • Lawyers claimed SEC could not provide evidence of wrongdoing after two years of investigation.
  • SEC sued Kwon and Terraform for raising billions through unregistered transactions and lack of disclosures.
  • Judge rejected previous attempt to dismiss the case.
  • Kwon and Terraform denied moving millions of BTC into Swiss bank accounts for personal gain.
  • SEC declined to comment on the request for summary judgment.
  • Terraform Labs co-founder Daniel Shin’s lawyers said he had no involvement in the collapse in a separate case.
  • Shin was indicted in South Korea for fraud charges in April.
  • Article provided for informational purposes only, not as legal, tax, investment, financial advice.

Lawyers representing Terraform Labs and its co-founder Do Kwon have requested a New York judge to make a decision in a case brought by the Securities and Exchange Commission (SEC) without a full trial, arguing that they did nothing wrong. The lawyers argue that the SEC has failed to prove that Terraform Labs offered or sold securities, which the agency had claimed in a complaint filed in February. The SEC had referenced the collapse of Terra USD, an algorithmic stablecoin, in May 2022. The lawyers argue that despite two years of investigation and extensive discovery, the SEC is no closer to proving the defendants’ wrongdoing. The SEC sued Kwon and Terraform in February, accusing the company of raising billions from investors through unregistered transactions and failing to provide full disclosures to investors. The case is being overseen by Judge Jed Rakoff in the Southern District of New York, who previously rejected a dismissal attempt by Terraform Labs and Kwon. Kwon and Terraform dispute the SEC’s claim that they moved millions of dollars into Swiss bank accounts for personal gain, calling the allegation false. In a separate action, lawyers for Terraform co-founder Daniel Shin have stated that Shin had no involvement in the collapse and have defended him in a Seoul district court where he faces charges including fraud. The SEC has declined to comment on the request for summary judgment.

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