Citing insufficient material dispute for trial, the SEC requests a summary judgment in the Do Kwon and Terraform Labs case.

Citing insufficient material dispute for trial, the SEC requests a summary judgment in the Do Kwon and Terraform Labs case.

The US. S. In its lawsuit against Do Kwon and Terraform Labs, the Securities and Exchange Commission (SEC) has asked a federal judge for a summary judgment.

There is "no genuine dispute as to any material fact," according to the SEC's filing in support of its allegations against Do Kwon and Terraform Labs.

Do Kwon and Terraform Are Taking Part in the Securities Sale.

The US SEC asserts that there is no question about the fact that buyers invested money using both fiat money and cryptocurrency, and that Do Kwon and Terraform Labs sold securities. The document also stated that the market lost $45 billion as a result of Terra's collapse.

The securities regulator said that investing a collective sum of money in a business with the promoters' efforts expected to generate the majority of the profits is compliant with the Howey test. If a transaction is to be classified as an investment contract, it must pass the Howey test, which is an important legal standard.

Additionally, according to the SEC, Kwon and Terraform had made false claims and engaged in fraudulent activity.

The regulator restated claims that investors were misled about the stability of the UST stablecoin. Concealing its arrangement of outside intervention, the company misrepresented its algorithm as a means of stabilizing prices.

The SEC argues that because of these actions, their statements regarding the efficacy of the algorithm were misleading and omitted important details.

The SEC's arguments were strengthened by the fact that investor wealth was significantly lost as a result of Terra's collapse in May of last year.

The Founder of Terraform Is Still in Montenegro Prison.

Do Kwon's defense team had earlier pleaded with the court to find in their favor, claiming the SEC had not provided enough evidence to support its claims that securities were being offered.

Currently serving a sentence for document forgery in Montenegro, Do Kwon was caught in possession of forged passports.

Daniel Shin, a co-founder of Terraform, blamed Do Kwon's poor management for the company's collapse during his trial in South Korea. Two years before the company's demise, he claimed to have cut ties with it and its operations.

.