Terraform Labs and its partners ask court to dismiss SEC charges
Terraform Labs and its co-founder Do Kwon have submitted a motion for summary judgment to a judge in the Southern District of New York, asking the judge to dismiss the SEC's allegations of involvement in a multi-billion dollar securities fraud. The company stated that after two years of investigation, collecting over 20 pieces of evidence, exchanging over 2 million pages of documents and data, the SEC has not proven that the defendants did anything wrong. Terraform is asking the judge to rule that the SEC has not sufficiently proven its case to justify a trial.
The outcome of the Do Kwon case may depend on Jump Trading’s actions in the UST incident
On October 19th, a legal lawsuit against Do Kwon and Terraform Labs may depend on the actions of market maker Jump Trading, as shown in documents submitted to a New York court on Wednesday. In May 2022, the collapse of UST had an impact on the cryptocurrency market, and Do Kwon was subsequently sued by the U.S. Securities and Exchange Commission for misleading investors. The latest documents in the case show a focus on Jump, which appears to have made a profit of $1.28 billion during the UST collapse. Jump Trading's actions may be significant, as the UST stablecoin had briefly become unpegged from the U.S. dollar. Although Kwon told investors that the token maintained a value of $1 due to its automated algorithm, SEC experts stated that this was actually due to Jump intervening in the market at Terraform's request. According to a letter written by Kwon's team to the Singapore Supreme Court, "the defendant denies these allegations and claims that Jump was not the reason for the UST price recovery at that time." The letter also added that "the May 2022 unpegging was the result of deliberate efforts by third parties to engage in 'short' trading, causing it to become unanchored from its price peg." Kwon's defense team also argued that the U.S. Securities and Exchange Commission did not have jurisdiction because the assets involved were currency, not securities.
Terraform Labs files motion claiming Citadel Securities has potential ties to UST decoupling
Terraform Labs has filed a motion in court claiming that Citadel may have a potential connection to the UST anchor detachment. The motion states, "Terraform points out that public evidence shows that Ken Griffin, the head of Citadel, plans to short UST during or before the anchor detachment in May 2022." It requests that Citadel Securities be forced to provide certain data based on a third-party subpoena and believes that this is "crucial" to its defense in the lawsuit brought by the US Securities and Exchange Commission against the company and its former CEO, Do Kwon.
Founder of failed stablecoin Terra faces charges of forging official documents, as judge rejects crypto defense theory
Do Kwon, the creator of the failed Terra stablecoin, is facing charges of forging official documents in Montenegro. U.S. District Judge Jed Rakoff has rejected a crypto defense theory that could have shut down the SEC's enforcement campaign. Rakoff refused to dismiss the SEC's securities fraud case against Terraform Labs and its founder Do Kwon, stating that the government adequately alleged that the defendants sold unregistered digital assets and deceived investors about the stability of the TerraUSD and Luna algorithmic stablecoins. Rakoff's ruling is the first to address the issue of the "major questions" doctrine not applying to the cryptocurrency industry, and future judges will have to consider his concern that allowing crypto to invoke the doctrine would disrupt routine economic regulation.
Cryptocurrency Entrepreneur Do Kwon and Terraform Labs to Face Fraud Allegations by SEC, Judge Rules
Do Kwon, the creator of the failed Terra stablecoin, has been taken to court in Montenegro to face charges of forging official documents. In the US, Terraform Labs and its founder, Kwon, have been ordered to face fraud allegations brought by the Securities and Exchange Commission (SEC) regarding the sale of unregistered securities. The SEC alleges that Kwon and Terraform Labs misled investors about the stability of their cryptocurrency tokens, leading to billions of dollars in losses. The case will move forward, according to US District Judge Jed Rakoff's ruling.
Controversial Arkham Intel Exchange Approves First Ever Bounty Hunt for Former Terraform Labs CEO Do Kwon
The Arkham Intel Exchange, a controversial platform, has approved its first-ever bounty hunt. Two crypto sleuths discovered evidence of crypto wallets belonging to Do Kwon, the former Terraform Labs CEO and now international fugitive.
Terraform Labs' New CEO Faces Uphill Battle to Revitalize Failed Stablecoin Terra (UST)
Terraform Labs' new interim CEO, Chris Amani, is open to the return of co-founder Do Kwon, but faces a daunting task in revitalizing the company behind the failed stablecoin Terra (UST). Following UST's depegging from the dollar, the Terra community has charted a new course without algorithmic stablecoins.
Terraform Labs Founder Sentenced to Four Months in Jail for Document Forgery in Montenegro
June 19 (Cointime) - Do Kwon, the former co-founder and CEO of Terra Labs, has been sentenced to four months in jail by a Montenegro court for using a fake Costa Rican passport in an attempt to leave the country in March.
Terraform Labs CEO Blames “Chinese-Named Agency” for Allegedly Forged Travel Documents
June 19 (Cointime) - Terraform Labs CEO, Do Kwon, has claimed in a Montenegro court that he was unaware the travel documents he was allegedly caught with were fake and blamed a "Chinese-named agency." Kwon stated that he received his reportedly forged travel documents, including a Costa Rica passport, through "agencies" recommended by friends.
Former Cryptocurrency Tycoon Do Kwon Accused of Financial Misconduct and Evasion Tactics
Do Kwon, a former cryptocurrency tycoon from South Korea, is facing allegations of financial misconduct and suspicious movements of around $30 million in digital assets.
