- Terraform Labs filed for summary judgment in its SEC lawsuit, citing the agency’s misrepresentations in another case
- The SEC made false claims in a separate lawsuit against Digital Licensing Inc, saying the company was closing accounts when that happened months prior
- Terraform Labs argues the SEC’s improper evidence handling in the Digital Licensing case justifies dismissing the lawsuit against Terraform Labs over its tokens
Terraform Labs has filed a motion requesting summary judgment in its ongoing legal battle with the SEC. The company claims the SEC made misrepresentations in a separate case, which supports Terra’s request to conclude the proceedings.
Details of the Debt Box Case
In a separate case against Digital Licensing Inc (Debt Box), Judge Robert Shelby said the SEC made false statements and threatened to sanction the agency. The SEC incorrectly claimed Debt Box was moving operations and closing accounts. However, this occurred months before the SEC’s allegations.
Implications for the Terra Case
Terra says the Debt Box situation shows the SEC’s improper use of evidence excerpts. It also challenges the SEC’s amended complaint about Terraform Labs controlling certain funds.
The original SEC lawsuit alleged Terraform Labs and Do Kwon raised billions through unregistered securities. Terraform Labs maintains its tokens are not securities. It previously filed to dismiss the case in October.
The summary judgment motion cites the Debt Box case as justification to end the lawsuit with Terraform Labs. This follows the judge’s rebuke of the SEC for misrepresenting facts. The court will decide if sanctions are warranted against the SEC.