SEC Jumps into the Ring, Seeking Summary Judgement Against Do Kwon & Terraform

SEC Seeks Summary Judgement Against Do Kwon and Terraform

The SEC Takes a Shortcut to Judgment, No Need for a Trial!

The Securities and Exchange Commission (SEC) has decided to skip the theatrics of a full trial and go straight for the jugular. They have filed a proposal for summary judgment, arguing that there is “no genuine dispute as to any material fact” in their case against Do Kwon and Terraform Labs. Talk about efficiency!

According to the SEC’s filing, there is no denying that investors put their money into purchasing Terraform’s tokens, whether it was through fiat currency or crypto assets. The regulator is adamant that this qualifies as a sale of securities, rehashing their well-reasoned argument.

It’s as clear as day. The money pooled in this venture was a common enterprise, with investors expecting profits primarily from the promoters’ efforts. In other words, the Howey test, a legal yardstick to determine whether a transaction qualifies as an investment contract, does indeed point to these tokens being securities.

But wait, there’s more! The SEC is not holding back its punches. They believe that Kwon and Terraform went beyond simply selling securities. They accuse them of engaging in fraudulent conduct and making misleading statements. It’s like selling snake oil with a smile.

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The SEC claims that Kwon and his team deceived investors about the stability of their stablecoin, UST. They went as far as to credit their algorithm for the coin’s price stabilization, while secretly pulling strings behind the scenes. It’s like claiming you have the secret recipe to success while actually secretly ordering pizza delivery. No wonder Terra collapsed, leaving investors in ruins and billions of dollars down the drain.

If we thought the SEC was the only one dancing around in the courtroom, we were wrong. Kwon’s defense team has also entered the ring with their own document, arguing against the SEC’s claims. They believe that the SEC has failed to prove that Terraform and Kwon were offering securities in the first place. It’s like a verbal tango, and we can’t wait to see who comes out on top.

Speaking of Kwon, he’s currently chilling in Montenegro, serving time for document forgery. Looks like those fake passports didn’t get him far. Meanwhile, Terraform’s co-founder, Daniel Shin, is on trial in South Korea. He decided to point fingers at Kwon, placing the blame squarely on his former partner’s mismanagement. Separation? It sounds more like a divorce with a whole lot of drama!

So, what’s the verdict going to be? Will Kwon and Terraform be held accountable for deceiving investors and fraudulently selling securities? Or will they manage to wriggle their way out of this legal tango? Only time will tell, my crypto comrades!

Stay tuned for more updates on this thrilling courtroom drama. In the meantime, keep an eye on your investments, and remember, not all tokens and stablecoins are created equal.

Oh, and if any of you happen to bump into Kwon in Montenegro, tell him we said hello!

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