SEC Files Request for Summary Judgment in Terraform Labs Case

The SEC, through a filing to the Southern District of New York court, has requested a summary judgment on its claims against Terraform Labs (TFL) and its founder Do Kwon.

According to the document, there is clear evidence that buyers invested money in either fiat currency or cryptocurrencies.

This accurately represents the argument made by the SEC about the sale of unregistered securities.

The evidence suggests that Kwon was involved in deceiving investors by creating and promoting Terra and LUNA tokens.

The Commission argued that there is no way a rational jury could find Kwon not responsible for the violations committed by Terraform Labs.

The SEC pointed out that the pooling of money into a common project, with the expectation of making a profit primarily through the efforts of the founders, meets the Howey test and justifies a ruling in favor of the agency.

Prior to this, TFL and Kwon had also filed a petition with the court. In their document, they argued that the SEC has failed to prove that the company had offered securities.