SEC Scored, Kwon Floored: Judge Rules Terraform Must Answer For Alleged Crypto Scam In Court
Portfolio Pulse from Murtuza Merchant
A U.S. federal judge ruled in favor of the SEC in a case against Terraform Labs and its founder Do Kwon, concerning the offering and sale of unregistered securities. The court did not grant summary judgment on fraud accusations, with a trial set for January 29, 2024. Terraform and Kwon are charged with misleading investors about the stability of TerraUSD and the potential value increase of their crypto tokens. Kwon also faces fraud allegations from U.S. prosecutors and is contesting extradition to the U.S.
December 28, 2023 | 11:55 pm
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Terraform Labs, associated with the cryptocurrency Luna, must face the SEC in court over unregistered securities offerings. The legal battle could impact investor confidence in Luna.
The court ruling against Terraform Labs and the ongoing legal issues surrounding its founder, Do Kwon, are likely to negatively affect investor sentiment towards Luna in the short term. Legal uncertainties and the potential for unfavorable outcomes can lead to decreased investor confidence and a possible decline in Luna's value.
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IMPORTANCE 90
RELEVANCE 100