United States of America: Issued ruling by US District Court in favour of SEC in Terraform Labs Case for alleged violation of Securities Act

On 28 December 2023, the United States District Court ruled in favour of the Securities and Exchange Commission (SEC) in a lawsuit against Terraform Labs and its former CEO, Do Kwon. The Court granted summary judgment for the SEC on the claim that Terraform Labs and Kwon offered and sold LUNA and MIR, two unregistered securities. However, the Court rejected the SEC's argument that Terraform Labs and Kwon offered and effected transactions in security-based swaps through the creation and maintenance of the Mirror Protocol. The Court also denied both sides' motions for summary judgment on the SEC's fraud claims, which will be decided in a jury trial.