In an ongoing legal saga that began in February, the U.S. Securities and Exchange Commission (SEC) has leveled accusations of fraud and criminal wire charges against TerraLabs and Do Kwon. Terraform Labs wasted no time challenging the lawsuit, seeking its dismissal for being baseless.
However, the SEC is unyielding in its pursuit of justice and urging the Court to reject the defendant’s request for a case dismissal. They allege multiple instances of fraud and violations of security laws by Terra and Do Kwon.
New Charges Shake the Legal Battle
Adding another layer of complexity to the legal battle, on November 7th, the SEC introduced seven new charges in a New York court. With unwavering determination, the SEC has countered every move made by Terraform Labs (TFL) and Do Kwon.
The SEC maintains its resolute stance, pushing for the Court to dismiss all requests from Terra and Do Kwon, encompassing the plea for case dismissal and the summary judgment in their favor.
Furthermore, the SEC is pursuing a summary judgment and emphatically asserting that Do Kwon and Terraform Labs have breached securities and exchange regulations. They allege that the defendants deceived investors to a staggering $45 billion. These serious allegations are substantiated with compelling, uncontested evidence.
A History of Accusations
Reflecting on the history of accusations, the SEC previously charged Do Kwon and Terraform Labs with creating the Terra blockchain and associated securities for digital assets. They stand accused of promoting these assets as securities and engaging in public offerings, including LUNA (now LUNC), wLUNA, and UST. Furthermore, the defendants face allegations of fraudulently offering LUNA and MIR on public trading platforms while disseminating false information about Chai and the de-pegging events that unfolded in 2021 and 2022.
As this legal battle rages on, the Terra ecosystem feels the strain despite a recent rebound in the crypto market. Terra (LUNA) prices have experienced a 7.84% increase this week, with an 8.51% rise in the last 24 hours. The cryptocurrency reached a 24-hour high of $0.54 and is currently trading at $0.513. Meanwhile, USTC and Terra Classic (LUNC) hover near resistance levels at $0.012 and $0.00007159, respectively.
However, it’s relevant to note that the recent uptick results from the positive news surrounding Bitcoin.
The community eagerly anticipates a return to the price levels seen in January, but the fate of Terra and Do Kwon remains uncertain, hanging in the balance.