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The post <a rel="nofollow" href="https://coinpedia.org/news/sec-seeks-summary-judgment-in-case-against-do-kwon-and-terraform/">SEC Seeks Summary Judgment Against Do Kwon and Terraform</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
The Terra ecosystem finds itself in a dangerous position, with prices of its native tokens, <a href="https://coinpedia.org/price-prediction/terra-luna-price-prediction/">Terra (LUNA)</a> and <a href="https://coinpedia.org/price-prediction/terra-classic-lunc-price-prediction/">Terra Classic (LUNC)</a>, experiencing a notable decline of over 4% and 2%, respectively, in the past 24 hours. This downturn has left investors apprehensive about further involvement in Terra’s cryptocurrency offerings. 
The backdrop of this market turbulence is the ongoing legal battle between Terra and Do Kwon against the SEC. The SEC has <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.105.0.pdf">requested </a>summary judgment in its complaint against <a href="https://coinpedia.org/news/citadel-securities-responds-to-terraforms-allegations-in-crypto-face-off/">Terraform Labs (TFL)</a> and Do Kwon. The regulatory body’s recent actions raise questions about their strategy, especially considering Terra’s defense claiming a lack of substantial evidence supporting any wrongdoing. 
<h2 class="wp-block-heading" id="h-understanding-sec-s-moves">Understanding SEC’s Moves </h2> 
The SEC has made a bold move, filing for summary judgment against Terra and <a href="https://coinpedia.org/news/terra-land-in-chaos-jump-trading-in-the-spotlight-as-sec-intensifies-legal-action-against-do-kwon/">Do Kwon</a>. This step could prevent a lengthy trial, as the SEC argues there’s little dispute over crucial facts. However, the core of their case revolves around the claim that Kwon and Terraform Labs sold securities, a point they believe aligns with the Howey test—a critical measure in determining investment contracts and securities under U.S. federal law.&nbsp; 
Also Read: <a href="https://coinpedia.org/news/terras-do-kwon-exposed-court-documents-reveal-faked-trading-volume-in-leaked-chat/">SHOCKING: Do Kwon’s Fraud Exposed! Will Terra Classic’s (LUNC) Price Plummet?</a> 
Accusation against Kwon 
The SEC maintains that Terraform and Kwon not only engaged in fraudulent behavior but also disseminated misleading information. This includes allegedly deceiving investors about the stability of UST and falsely attributing their algorithm for price stabilization while secretly orchestrating third-party intervention. This move by the SEC carries significant weight in the ongoing case, with potentially far-reaching implications. 
<h2 class="wp-block-heading" id="strong-terra-s-defence-is-strong-not-backing-down">Terra’s Defence is Not Backing Down!</h2> 
Kwon’s defense team has denied these allegations, contending that the SEC has not effectively demonstrated that securities were offered. Kwon currently remains in Montenegro, serving a sentence for document forgery. 
Read More: <a href="https://coinpedia.org/news/sec-vs-terra-terraform-labs-seeks-swift-resolution-amid-sec-allegations/">Terraform Labs and Kwon Defend Against SEC Allegations</a> 
Repeated Denial 
Despite Terra’s denial of the SEC’s claims, Terraform co-founder <a href="https://coinpedia.org/news/breaking-south-korean-authorities-indict-terra-co-founder-daniel-shin/">Daniel Shin</a> has distanced himself from the company’s collapse, placing the blame on Kwon’s alleged mismanagement. Shin is currently on trial for his role in the collapse of the Anchor Protocol, a key part of the Terra ecosystem. 
Terraform Labs and Kwon have consistently denied all accusations of wrongdoing, questioning the SEC’s legal basis and interpretation of events. They have also argued that the SEC has failed to produce concrete evidence that they offered or sold investment contracts. 
<h2 class="wp-block-heading" id="strong-to-be-continued-strong">To be Continued…</h2> 
The blame game continues in the Terra saga, with conflicting narratives further complicating the ongoing legal battle. 
Where do you see the Terra ecosystem going from here?

SEC Seeks Summary Judgment Against Do Kwon and Terraform

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