Terraform Labs and Do Kwon Push for Summary Judgement in SEC Lawsuit, Pointing Out Weaknesses in the Case
Terraform Labs and co-founder Do Kwon have filed a motion in the Southern District of New York court, urging the removal of certain sections from the complaint filed by the U.S. Securities and Exchange Commission (SEC).
The SEC alleges that the collapsed stablecoin issuer and its former CEO unlawfully sold crypto assets qualifying as securities and moved funds into Swiss bank accounts while the Terra stablecoin and its associated asset Luna depreciated. In response, Terraform and Kwon dispute these claims, asserting that the allegations related to the Swiss accounts lack a factual basis.
They criticize the SEC for launching a public action without thorough investigation and highlight the absence of admissible evidence supporting the SEC’s claims. Seeking a summary judgment, the defendants aim for a favorable ruling without proceeding to trial due to what they perceive as severe deficiencies in the SEC’s case.
Clever Robot News Desk 3rd November 2023
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