Lawyers for the commission cited several examples of Do Kwon touting UST to U.S. investors and Terraform’s former communications head making false claims about the stablecoin.
Lawyers for the United States Securities and Exchange Commission (SEC) have filed their response to a memo by Terraform Labs in proposed remedies for judgment following a verdict in the civil case.
In a May 6 filing in the U.S. District Court for the Southern District of New York, the SEC pushed back against Terraform’s arguments for less disgorgement in judgment in the civil case, for which a jury found the firm liable. According to SEC lawyers, Terraform and co-founder Do Kwon never presented the argument in court that the commission was enforcing the extraterritorial application of federal laws for the offer and sale of tokens outside the United States.
“Defendants’ arguments lack merit as they rely on a misapplication of the law and misstatement of the relevant facts,” said the SEC filing.
