Token

Impact

Terra

The post <a href="https://coinpedia.org/news/ripple-clo-stuart-alderoty-weighs-in-on-terraform-labs-ruling-impact/" rel="noopener noreferrer nofollow">Ripple CLO Stuart Alderoty Weighs In on Terraform Labs Ruling Impact</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a>
U.S. Federal Judge Jed Rakoff delivered a summary judgment on December 28th in the Terraform Labs case, classifying Luna, MIR, and other crypto tokens as ‘securities.’ This landmark decision, rooted in their identification as investment contracts, sets a definitive tone for the ongoing security violation trial.
The judgment solidifies:
<ul>
 <li>Token Classification: UST, LUNA, wLUNA, and MIR are affirmed as securities due to their inherent nature as investment contracts.</li>
 <li>Legal Trajectory: Despite this classification, the legal proceedings continue, with both parties’ motions for a summary judgment on fraud charges being dismissed. The case now moves forward to a jury trial.</li>
</ul>
Insights from the trial include:
<ul>
 <li>Witness Accounts: The judge permitted testimony from witnesses on both sides while limiting two defense witnesses focused on Terraform’s custodial wallets and the crypto economy overview.</li>
 <li>SEC’s Stance: The court’s decision aligns with the SEC’s position, asserting that most cryptocurrencies should be treated as securities under its oversight. Notably, this ruling specifically applies to Luna and Mir.</li>
</ul>
Recapping the allegations:
<ul>
 <li>SEC Charges: Terraform Labs, led by CEO Do Kwon, faced SEC charges in February, accused of orchestrating a “multi-billion dollar crypto asset securities fraud” through Terra USD.</li>
 <li>Fundraising Tactics: The SEC contends that Terraform Labs raised billions through unregistered transactions, including security-based swaps called “mAssets” and the controversial Terra USD.</li>
</ul>
Looking ahead:
<ul>
 <li>Jury Trial Date: A critical juncture awaits as the trial on fraud allegations is scheduled for January 24, 2024. Stay tuned to Coinpedia for real-time updates on this high-profile case.</li>
</ul>
This ruling marks a watershed moment in the Terraform Labs narrative, significantly influencing the discourse on crypto asset classification and potential regulatory ramifications for the broader cryptocurrency landscape.

Ripple CLO Stuart Alderoty Weighs In on Terraform Labs Ruling Impact

CoinPedia News

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