Summary
Judge Jed Rakoff has granted a summary judgment in favor of the US Securities and Exchange Commission (SEC) in the case against Terraform Labs and former CEO Do Kwon. The judgment states that both Kwon and Terraform offered and sold unregistered securities, specifically LUNA and MIR tokens. The trial will now focus on the fraud claims brought by the SEC. The SEC had requested the judge to grant a judgment on the securities claims to prevent them from being decided by a jury. The trial is set to begin on January 29.
Key Points
1. Judge Jed Rakoff has granted a summary judgment in favor of the US Securities and Exchange Commission (SEC) in their case against Terraform Labs and former CEO Do Kwon. The judgment asserts that both Kwon and Terraform offered and sold unregistered securities, specifically focusing on LUNA and MIR tokens.
2. Rakoff ruled that UST, LUNA, wLUNA, and MIR are securities because they are investment contracts under the Howey test. The trial will now proceed to focus on the fraud claims brought by the SEC against Terraform and Kwon.
3. The SEC had requested the judge to grant a judgment on the securities claims to bypass a jury decision. However, Rakoff stated that genuine disputes of material fact remain regarding the fraud claims, and therefore summary judgment cannot be granted on those claims. The trial is set to begin on January 29th, with jury selection starting on January 24th.