As a seasoned crypto investor with a keen interest in regulatory developments, I find the ongoing legal battle between Terraform Labs and the SEC a fascinating case to follow. The latest filing by the SEC in response to Terraform’s proposed remedies for judgment following their verdict in the civil case has added another layer of complexity to this saga.
The SEC’s legal team has submitted a counterargument to Terraform Labs’ suggested penalties in the aftermath of a court decision in the securities violation case.
In a document submitted to the U.S. District Court for the Southern District of New York on May 6, the Securities and Exchange Commission (SEC) contested Terraform’s claim for reduced penalties in the civil case where they were held responsible. The SEC attorneys asserted that during the trial, neither Terraform nor its co-founder Do Kwon raised the argument that the commission was overstepping its boundaries by enforcing federal securities laws outside the United States regarding the offer and sale of tokens.
The SEC filing stated that “Defendants’ contentions are unfounded, as they incorrectly interpret the law and distort the essential facts at hand.”
If the court were to acknowledge Terraform’s legal justification, the SEC pointed to numerous instances within the US as grounds for enforcing securities regulations. However, a crucial aspect of Terraform’s argument – the hidden involvement of an American corporation, Jump, in stabilizing TerraUSD (UST) – was left unexplored.
The previous head of communications for Terraform, who was based in California, spread a string of untrue and deceptive tweets on behalf of Kwon, claiming that UST had managed to maintain its $1 peg due to its algorithm. In September 2021, at a conference in New York, Kwon publicly endorsed UST and spoke to various media outlets with a predominantly US-based audience.
The SEC planned to seek $3.6 billion in disgorgement from Terraform and Kwon and $1.7 billion in “ill-gotten gains from Defendants’ net sales of UST.” In its filing for proposed judgment, Terraform suggested a $1 million civil penalty and no disgorgement.
Following a two-week long court proceeding in April, the jury reached a verdict, finding Terraform and Kwon accountable for committing fraud. A new hearing is set for May 22, where all involved parties will appear before Judge Jed Rakoff to discuss potential resolutions.
In 2023, I encountered legal issues in Montenegro that prevented me from attending the trial in person. I was arrested and sentenced to four months in prison for utilizing falsified travel documents. Presently, I am still detained in the country while the courts deliberate on extradition requests from both the United States and South Korea.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
- TON PREDICTION. TON cryptocurrency
- HI PREDICTION. HI cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
2024-05-07 22:55