The Securities and Exchange Commission (SEC) has asked a federal judge for a summary judgement in its case against Terraform Labs founder Do Kwon, arguing that his alleged fraud and sale of securities is “clear, undisputed, and overwhelming.”
Granting summary judgement means that the case forgoes a trial by jury. A few days ago, Kwon’s lawyers requested the same motion — but asked the judge to take their side instead. The defense argued that the SEC hasn’t adequately proved that Terraform Labs was selling securities.
As readers recall, the firm’s ‘stablecoin’ TerraUSD (UST) spectacularly depegged last year. Its native token LUNA crashed soon after, causing a domino effect on the crypto market that it has yet to recover from.
In the SEC’s motion filed on Thursday, Kwon and his company are accused of orchestrating a fraudulent scheme that “ultimately led to $45 billion in market loss, including devastating losses for US investors.” Lawyers wrote that Kwon offered and sold “an array of crypto asset securities” and knowingly deceived investors about the stability of these securities and TerraUSD.
Kwon himself is still in Montenegro, serving a sentence for document forgery while awaiting extradition.