Terra

Security

<div class="coinjournal">
 <ul>
  <li>Federal Judge Rakoff rules $LUNA and $MIR as securities, finding Terraform Labs violated U.S. laws.</li>
  <li>SEC trial, scheduled Jan 29, 2024, centres on Terra’s UST stablecoin collapse and $25M alleged fraud.</li>
  <li>Jump Trading’s involvement adds complexity; the SEC insists Judge Rakoff, not a jury, decides securities status.</li>
 </ul>
 <p>In a recent legal development, Federal Judge Jed Rakoff ruled in favour of the U.S. Securities and Exchange Commission (SEC) against Do Kwon and Terraform Labs. The judgment asserts that Terraform violated U.S. securities laws by selling unregistered securities, specifically LUNA and MIR tokens.</p>
 <p>This decision sets the stage for a trial scheduled to commence on January 29, 2024, shedding light on alleged fraudulent activities and the involvement of the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>.</p>
 <h2 id="luna-and-mir-tokens-deemed-securities">LUNA and MIR tokens deemed securities</h2>
 <p>In the summary judgment, Federal Judge Jed Rakoff sided with the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> in the case against Do Kwon and Terraform Labs. The ruling established that Terraform failed to register LUNA and MIR tokens as <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities, concluding that the company <a rel="noopener noreferrer nofollow" title="violated" href="https://thebittimes.com/tag/violated.html">violated</a> U.S. <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities laws. This aligns with the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s stance that cryptocurrencies, including LUNA and MIR, should be classified as <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities, subject to the agency’s regulation.</p>
 <p>Judge Rakoff’s decision restricts the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s regulatory authority to LUNA and MIR, marking a significant point in the ongoing legal battle. The charges stem from the collapse of Terra’s UST stablecoin in 2022, with the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> alleging that a fraudulent <a rel="noopener noreferrer nofollow" title="Security" href="https://thebittimes.com/tag/security.html">Security</a> offering raised $25 million.</p>
 <h2 id="jump-trading-s-role-and-sec-s-position">Jump Trading’s role and SEC’s position</h2>
 <p>New evidence presented by Jump Crypto adds complexity to the case. Jump Crypto, believed to have manipulated TerraUSD, allegedly profited $1.28 billion. The SEC claims Terra loaned tokens to the U.S. trading firm Jump Crypto further entwining the lawsuit with market manipulation accusations.</p>
 <p>In a noteworthy move, the SEC has requested that Judge Rakoff determine whether Terraform offered and sold unregistered securities, arguing against a jury decision. The agency contends that the classification of securities is a legal matter for the court, not a factual question for a jury.</p>
 <p>While the civil trial progresses, Do Kwon remains in a Montenegro prison, after successfully appealing his extradition to the U.S. for criminal charges. As the legal saga unfolds, the trial’s outcome will have implications for classifying and regulating cryptocurrencies, particularly LUNA and MIR, in the ever-evolving landscape of financial markets.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/judge-rules-terraform-labs-violated-rules-luna-and-mir-deemed-securities-tbt75124.html">https://thebittimes.com/judge-rules-terraform-labs-violated-rules-luna-and-mir-deemed-securities-tbt75124.html</a></p>

Judge rules Terraform Labs violated rules: LUNA and MIR deemed securities

Table of Contents

TheBitTimes

Other articles published on Dec 29, 2023

3 tokens under $1 set to replace Shiba Inu

Investing $100 in Bonk, Dogecoin, and Rebel Satoshi: Road to $10,000?

BlackRock designates JPMorgan, Jane Street as Bitcoin ETF authorized participants

$8 or Beyond: The 2024 Price Prospects of CAKE Coin

Catalyx Suspends Trading Activities Following Security Breach

XRP Investors Lead With 2,000% Surge, But Major Catch Shifts Narrative

Join our free newsletter for daily crypto updates!