- SEC filed for summary judgment against Terraform Labs and Do Kwon related to the collapse of Terra Luna, alleging fraud and unregistered securities offerings that caused $45 billion in losses.
- Terraform and Kwon also filed for summary judgment, claiming the SEC cannot prove they offered or sold securities.
- Do Kwon found guilty in Montenegro of passport fraud, while Terraform co-founder Daniel Shin faces trial in South Korea related to the collapse.
The SEC has filed a motion for summary judgment against Terraform Labs and Do Kwon related to the collapse of the Terra Luna ecosystem. This comes after Terraform and Kwon also filed for summary judgment last week.
SEC Allegations Against Terraform and Do Kwon
The SEC claims Terraform and Kwon orchestrated a fraudulent scheme that led to $45 billion in market losses. They allege:
- Defrauding investors
- Unregistered public offerings of LUNA and MIR tokens
- Distributing tokens to intermediaries who resold them into US markets
A summary judgment allows a decision without a full trial. The SEC says evidence of violations is clear and overwhelming.
Terraform and Do Kwon Fight Back
In their own motion, Terraform and Kwon say the SEC cannot prove they offered or sold securities.
Other Legal Issues Facing Do Kwon and Terraform
- Kwon found guilty in Montenegro of using a fake passport
- Terraform co-founder Daniel Shin recently on trial in South Korea for fraud
- South Korean prosecutors indicted Shin and others on capital markets violations
Shin’s lawyers deny his involvement in the collapse.
The SEC and Terraform/Kwon have filed dueling motions for summary judgment related to the collapse of Terra Luna. A decision for either side would avoid a full trial. The outcome of the high-profile case could have major implications for the crypto industry.