In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs and co-founder Do Kwon, the court has announced dates for summary judgment-related proceedings. Meanwhile, the SEC and Terraform Labs have submitted individual motions for summary judgment in their favor.
Terra Seeks To Dismiss the SEC Lawsuit
According to a court filing on a minute entry for proceedings held before Judge Jed S. Rakoff, the court is moving ahead with summary judgment proceedings and key hearings to happen this week.
The Court may extend the deadline for summary judgment replies to Monday, November 20 if Judge Jed S. Rakoff makes any rulings at Friday’s Daubert hearing. A Daubert hearing enables both parties to examine the challenged expert in open court to set his or her testimony to evaluate its admissibility.
SEC argued that Terraform Labs and Do Kwon created the Terra blockchain and related crypto asset securities, marketed crypto assets such LUNA (now LUNC), wLUNA, and UST as securities, and engaged in the public offering of LUNA. In addition, the defendants sold LUNA and MIR directly into public trading markets, while misleading and deceiving investors about Chai and depegging events in 2021 and 2022.
Earlier, Do Kwon and Terraform Labs urged the court to dismiss the lawsuit on claims that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and its mirrored assets (mAssets) are not securities. Moreover, there is no evidence to prove Bitcoin transferred to a Swiss bank for personal gains.
Last Week, the SEC filed opposition to dismiss the lawsuit and continues to argue violations of security laws and fraud by Terra and Do Kwon.
Terra (LUNA) and Terra Classic (LUNC) prices jumped massively in the last few days. In the last 24 hours, LUNA is up 1% and LUNC rose 2%. Investors remain cautious of investing in Terra ecosystem tokens amid the fall in prices in the last few months.
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