The US Court Declared LUNA - UST to be a Security
According to the decision of the Southern District Court of New York on December 28 (US time), there was a judgment in favor of the US Securities Commission (SEC) in the lawsuit against Terraform Labs and founder Do Kwon with allegations Illegal securities offering.
Specifically, the court assessed that virtual currencies such as LUNA, UST, wLUNA and MIR in the Terra ecosystem are considered fake securities, and Terraform Labs violated the law when issuing them to US investors without registering with the SEC.
Judge Jed Rakoff of the District Court for the Southern District of New York upheld the SEC's decision, finding that Terraform Labs and its co-founder Do Kwon offered and sold unregistered securities. Judge Rakoff noted that UST, LUNA, wLUNA and MIR were undoubtedly securities…However, the court rejected the SEC's claim that Terraform Labs provided securities trading services related to these currencies.
This is considered a new step in the lawsuit, and the trial of other charges is expected to continue in January 2024.
