Do Kwon and Terraform Labs ask decide to toss SEC’s lawsuit

Terraform Labs co-founder Do Kwon has requested a United States district decide to reject the securities and fraud go well with from the federal securities regulator, claiming it has didn’t show they did something improper.

In an Oct. 27 submitting to a New York District Courtroom, attorneys for Kwon and Terraform argued its cryptocurrencies Terra Luna Traditional (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR) and its Mirrored Property (mAssets) that mirror shares on-chain aren’t securities because the Securities and Trade Fee alleged.

“After two years of investigation, the completion of a discovery interval that resulted in the taking of greater than 20 depositions, and the alternate of over two million pages of paperwork and knowledge, the SEC is evidentiarily no nearer to proving that the Defendants did something improper,” the attorneys wrote.

They added the “proof doesn’t exist to help lots of the SEC’s claims” and asserted the regulator “knew a few of its allegations have been false” — specifically, an allegation that Kwon and Terraform secretly moved thousands and thousands into Swiss financial institution accounts for their very own acquire.

In its go well with in opposition to Kwon and Terraform filed in February, the SEC claimed the pair despatched 10,000 Bitcoin (BTC) to a Swiss monetary establishment and withdrew $100 million. It additionally claimed they dedicated fraud by “repeating false and deceptive statements.”

“The SEC knew this allegation was false when it filed this case,” Kwon’s attorneys wrote. ”That is made even worse by the undisputed indisputable fact that TFL had no clients, and thus no buyer funds.”

The $40 billion Terra ecosystem collapsed in Might 2022 after its USTC algorithmic stablecoin misplaced its U.S. greenback peg.

Associated: Terraform co-founder Shin blames protocol for collapse throughout trial in S. Korea

Kwon and Terraform additionally moved to exclude the opinion of the SEC’s consultants together with a report from Rutgers College economics professor Bruce Mizrach which they referred to as “junk science.”

Choose Jed Rakoff, who oversees the case, denied Terraform’s earlier try to toss the lawsuit.

Kwon is at present detained in Montenegro and has beforehand requested the court docket to reject the SEC’s movement to extradite and interview him within the U.S.

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