The ongoing case between the US Securities and Exchange Commission (SEC) and Terraform Labs and its co-founder Do Kwon continues to unfold. The dates for the proceedings regarding the summary judgment have been revealed. Meanwhile, both the SEC and Terraform Labs have submitted separate petitions, hoping for a favorable outcome in the summary decision.
Terra Wants the SEC Case to Be Dismissed
According to the transcript of the hearings conducted under the supervision of Judge Jed S. Rakoff, the court will continue with the summary judgment hearings and important proceedings this week.
The court may extend the deadline for responses to the summary judgment, if Judge Jed S. Rakoff reaches a decision during the Daubert hearing on Friday. The new deadline could be until Monday, November 20th.
To define the Daubert hearing, it allows both parties to examine the admissibility of the opposing expert’s testimony in open court.
SEC vs Terra Luna Case
The SEC has made various accusations against Terraform Labs and Do Kwon regarding the Terra blockchain. It claimed that the crypto asset securities in question were created, marketed by the company as securities, including LUNA (now LUNC), wLUNA, and UST, and that LUNA had been offered to the public.
Additionally, it is believed that the defendants directly traded LUNA and MIR on public trading markets, and investors were misled and deceived about the Chai and the depegging events in 2021 and 2022.
Do Kwon and Terraform Labs had previously called on the court. In their call, they invited the court to dismiss the case, claiming that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and mirrored assets (mAssets) were not securities.
Last week, the SEC filed an appeal for the dismissal of the case, alleging that Terra and Do Kwon violated securities laws. Furthermore, allegations of fraud have been made against Kwon. The prices of Terra (LUNA) and Terra Classic (LUNC) have risen in the past few days. In the last 24 hours, LUNA has seen a 1% increase, while LUNC has seen a 2% increase.
