Judge Sides With SEC Over Do Kwon, Says UST, LUNA Are Securities

A federal judge has ruled in favor of the Securities and Exchange Commission (SEC) over Do Kwon and Terraform Labs, stating that the cryptocurrencies UST and LUNA are indeed securities. The ruling marks a significant victory for the SEC, as it supports their claims that Terraform offered and sold unregistered securities in the form of cryptocurrencies. Judge Jed Rakoff of the U.S. District Court Southern District of New York granted the SEC summary judgment on these claims, meaning they will not be up for debate during the trial. The jury will only be asked to consider other aspects of the securities fraud charges, such as whether Kwon deceived customers about the security of Terraform’s financial products. Kwon’s attorneys had previously attempted to dismiss the case, but the judge was not persuaded. The trial is scheduled to proceed in January, and Kwon also faces criminal charges and extradition requests from multiple jurisdictions.