SEC Against Dismissal of Lawsuit Against Former Terraform Labs CEO Do Kwon
Representatives of the SEC have stated that documents provided by the lawyers for TFL and co-founder Do Kwon in support of their motion to dismiss the SEC’s lawsuit do not contain adequate grounds for dismissal.
During the June 15 hearing, the defendants provided additional documents centered around determining if assets created by the company satisfied criteria for securities, including transcripts of the US House Financial Services Committee hearing, the SEC petition against Binance.US, and emails from the former Commissioner William Hinman from the Ripple lawsuit.
Lawyers argued that TerraUSD (UST) algostablecoin should not be classified as a security due to its practical purpose rather than as an investment.
However, representatives of the department declared that these documents were not pertinent to this particular case, as the Howey test clearly defines parameters of an “investment contract” that UST fits.
