Du Kwon’s lawyers pointed out that Coinbase does not list securities, and that the SEC has not been given powers by Congress to regulate digital assets as securities or commodities.
The Terra Luna and Do Kwon case could be headed in a different direction after a South Korean court ruled that the rebranded LUNC project is not a security product. As a result, Du Kwon’s lawyers were prompted to ask the United States Securities and Exchange Commission (SEC) to stop the legal pressure due to lack of jurisdiction. His lawyers noted in a court filing that Terra LUNA was a global currency that never participated in an initial coin offering (ICO).
Additionally, the attorneys argued that the sale of LUNA coins was never directed to any person in the United States. Thus the jurisdiction of the United States SEC over Do Kwon and Terra Luna UST was denied.
“TfL did not conduct any public offering requiring SEC registration. The AC did not allege that the defendants solicited the sale of digital assets to the general public anywhere. The challenged LUNA and MIR token sales were subject to multiple exemptions was exempted from registration. And Defendants had no involvement in the programmatic mining of mAssets by Mirror Protocol nor did they solicit transactions on the Protocol by US-based persons,” the court filing said. noted,
As a result, Du Kwon’s lawyers have requested the court to dismiss the charges due to insufficient factual statements. The court filing noted that Terraform Labs was a Singapore-based open-source software development firm that Kwon served as CEO. In its defense, Terra Luna UST states that it is an algorithmic stablecoin that operates only by adjusting the money supply in response to changes in demand.
Additionally, Do Kwon’s lawyers indicated coinbase does not list securities, and seconds What powers have not been granted by Congress to regulate digital assets as securities or commodities?
What next for Do Kwon and the Terra Luna victims?
A recent investigation by South Korean law enforcement revealed that Do Kwon did not own material assets such as a house, car or land that could be liquidated in favor of Terra’s victims. Since Terra Luna’s clients were global, the matter became even more complicated when it came to identifying the victims. In addition, the Terra Protocol provides services for a decentralized financial protocol and a centralized exchange to adapt and accommodate LUNA and UST.
In return, the DeFi And CEX Protocol offered Terra Luna and UST tokens to its clients. As a result, the true value to affected users may never be fully realized as some prefer the protocol. ftx have since collapsed.
Nevertheless, Du Kwon is yet to be prosecuted for fraud after being arrested in Montenegro while trying to flee to Dubai.
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