The SEC claimed that Terraform Labs and Kwon "orchestrated a multi-billion-dollar fraud involving the development, marketing, and sale of various cryptocurrencies," according to court documents.
A United States court has ruled in favor of the Securities and Exchange Commission (SEC) regarding allegations that Terraform Labs and its former CEO, Do Kwon, offered and sold unregistered securities.
According to court documents, the court granted summary judgment for the SEC on Count IV of the Amended Complaint, involving the defendants’ unregistered offers and sales of LUNA and MIR tokens in violation of Sections 5(a) and (5c) of the Securities Act.
It also grants summary judgment for defendants on "Counts V and VI of the Amended Complaint, involving the alleged unregistered offers of and transactions in security-based swaps."
