The US Securities and Exchange Commission (SEC) has won a big case against TerraForm Labs (Terra) and its founder, Do Kwon.
A court order from yesterday states that Judge Jed Rakoff found Terra and Do Kwon guilty of breaking federal laws. They were accused of selling two securities, TerraUSD (UST) and LUNA, without proper registration.
SEC Allegations Against Terra Following Ecosystem Collapse
In the aftermath of the Terra ecosystem’s dramatic downfall, resulting in a loss of over $40 billion last year, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in February 2023. The SEC contends that Terra engaged in the offering and sale of four crypto assets, categorizing them as unregistered securities.
Additionally, the SEC accuses Terra of conducting transactions in security-based swaps through the Mirror Protocol. This protocol facilitates the creation of mAssets, blockchain-based assets mirroring real-world assets using on-chain exchange prices.
On a more serious note, the commission has brought fraud charges against Terra and its founder. The SEC alleges that both were involved in orchestrating a fraudulent scheme, further complicating the legal challenges faced by the beleaguered blockchain company.
Judge Rules on SEC Case Against Terra: Mixed Verdict and Trial Ahead
In a comprehensive 71-page summary judgment released recently, Judge Rakoff sided with the U.S. Securities and Exchange Commission (SEC) regarding the status of LUNA and UST as unregistered securities. The judge pointed to a previous statement from Terra’s founder, Do Kwon, where he urged LUNA investors to “sit back and watch him kick a**,” suggesting a common enterprise for profit based on Terra’s efforts.
While this decision is a partial victory for the defendants, as the judge rejected SEC claims of illegal offering and selling of security-based swaps, it’s not a complete win. The judge also denied the summary judgment on fraud claims, scheduling a jury trial for the fraudulent charges next month.
Judge Rakoff made additional rulings, refusing to exclude testimonies from SEC experts Dr. Matthew Edman and Dr. Bruce Mizrach, as well as Terra’s expert Dr. Terrence Hendershott. The court plans to address remedies after the upcoming trial.
Post-decision, a Terra spokesperson expressed disagreement with the verdict, emphasizing the company’s commitment to defending against the SEC’s fraudulent claims at the trial. However, the spokesperson didn’t clarify whether the company intends to appeal other aspects of the summary judgment decision.
Terra Decision Impact on SEC’s Crypto Enforcement Strategy
The recent judgment against Terra has potential implications for the SEC’s crypto industry enforcement efforts. This situation draws parallels with the SEC’s setback in July against Ripple, where XRP was deemed not a security by a New York federal judge.
Despite Terra attempting to leverage the Ripple ruling in its defense, Judge Rakoff rejected this argument, fueling speculation among legal experts. Many anticipated a summary judgment favoring the SEC, signaling the regulator’s enforcement agenda.
Ironically, the court’s decision now provides the SEC with a tool to advance its regulatory initiatives in the crypto space. Charging Terra with offering unregistered securities, the SEC has already classified other crypto assets like ADA and SOL as securities.
This verdict could pave the way for the SEC to label additional tokens as securities in the future, citing the Terra ruling to reinforce its position in ongoing regulatory actions.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#LUNA #Terraform #BinanceSquare

Terra Classic ecosystem tokens, LUNC and USTC, have been on a tumultuous journey, with a crash and subsequent rise from the ashes. Now, a contentious debate surrounding tokenomics is taking center stage.
The focal point of this battle is Proposal 11958, which calls for the incineration of 8 million USTC from the community pool in a bid to revive the imploded Terra Classic tokens, including LUNC and USTC.
A Burning Question: Will it Ignite or Fizzle Out?
Supporters of the burn argue that it is a necessary step towards achieving deflation and stability. They view the 8 million USTC as excess baggage, with the community pool already holding a substantial 3.49 billion LUNC, enough to cover operational costs.
Vocal supporter, VegasMorph, emphasizes that this action sends a powerful message about actively shaping the future of the Terra Classic ecosystem.

However, skeptics remain unconvinced. The proposal received a lukewarm response, with only 28% of the community voting in favor, while 71% opposed it. An additional 1% wielded the “No with Veto” hammer.
This skepticism stems from the community’s preference for exploring alternative burn mechanisms, particularly regarding the 800 million USTC trapped in the inaccessible Risk Harbor wallet.
The community’s wariness of drastic measures is a direct result of the bitter lessons learned from the Risk Harbor saga, which serves as a painful reminder of the May 2022 crash.
In response, they are actively seeking creative solutions. Ideas under consideration include on-chain burning mechanisms and community-driven initiatives that incentivize USTC burning.
Market Reflects Uncertainty
The market mirrors the ongoing uncertainty surrounding the burn proposal. LUNC, after a brief surge, experienced a 2% dip from its 24-hour high, with the current value hovering around $0.0001441.
However, trading volume witnessed a 10% increase, indicating sustained interest in the digital asset. On the other hand, USTC remained relatively stagnant, trading at $0.0325.
Awaiting the Phoenix’s Return
Although the 8 million USTC burn proposal may have encountered resistance, it has sparked a crucial conversation about the future of Terra Classic.
The community’s unwavering dedication to finding innovative solutions demonstrates its resilience and belief in the platform’s potential for resurgence.
Whether through targeted burns or ingenious community-driven initiatives, the ultimate goal remains the same: to restore Terra Classic to its former glory and reshape its narrative from ashes to ascendancy.
A Lesson Learned, a Shadow Cast
The inaccessible 800 million USTC trapped in Risk Harbor’s multisig wallet serves as a stark reminder of the fragility of trust and the critical need for robust contingency plans.
While the community’s decision to blacklist the wallet was necessary, it highlights the importance of exercising greater vigilance in safeguarding assets and ensuring accountability from third-party partners.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#Terra.Classic #lunch $LUNC

Cosmos 堆栈开发小组 Genuine Labs 提出的 Terra Classic 开发提案已正式获得社区通过。
Terra Luna Classic 社区已批准 Genuine Labs 的一项重大提案，Genuine Labs 是一群在 Cosmos 堆栈方面经验丰富的开发人员，与 L1TF 和其他开发人员合作进行 Terra Classic 链开发。开发团队发现了 Terra Luna Classic 的许多问题，并提供了解决这些问题的帮助。
Terra Luna Classic 社区通过正版实验室提案
提案 11940“正版实验室 Terra Classic 开发提案”在 Terra Luna Classic 社区支持的 Station 钱包的治理投票中成功通过。该团队提议与 L1 团队合作开发 Terra Luna Classic。
该提案已获得 84.98% 的“赞成”票，表明社区批准开发团队进行 Terra Classic 开发。然而，该提案也获得了 3.23% 的“反对”票和 0.43%的“否决票”，以及 11.37% 的“弃权”票。包括 Allnodes 在内的大多数顶级验证者都投票支持该提案。
开发团队计划初期重点关注集成和改进IBC Hooks和数据包转发中间件（PFM）功能，以及加强手续费税收费机制的端到端测试和链间测试。前 L1TF 成员 Fragwuerdig 指出，IBC-hooks 和 PFM 已经在以下分支上实施，Genuine Labs 可能需要重新发布工作提案。
它由高级开发人员 Nguyen、高级开发人员 Minh和初级开发人员 Dong组成。他们为 Osmosis、Quicksilver、Stride 和 Composable 做出了贡献；参与了 Gravity-Bridge、IBC-Go、Cosmos-SDK 等核心存储库；并在其他任务中开发了费用提取模块。
该团队希望为 Terra Luna Classic 生态系统带来有价值的改进，并 在6 周 的时间内 筹集16,000 美元。
LUNC 价格在过去 24 小时内下跌 3%，目前交易价格为 0.000140 美元。24 小时最低价和最高价分别为 0.000138 美元和 0.000146 美元。此外，过去 24 小时内交易量下降了 20%，表明交易者缺乏兴趣。
与此同时，  USTC 价格为 0.0323 美元，在过去 24 小时内下跌 1%。尽管有多项销毁中科大的提议，但交易量仍下降了 20%。#Genuine  #Terra

Network validators and the Terra Classic community's L1 Task Force (L1TF) have persisted in finding solutions to return $USTC to its dollar peg. A fresh proposition that they have put out as part of their efforts is now being voted on.
A New Proposal Involves the Burning of 800 Million US Dollars in Crypto
The community is planning to burn 800 million USTC tokens in a "legally absolved route" in their most recent proposal (Proposal 11927). The Luna Classic treasury, which is stored in the Risk Harbor Multisig Wallet, is where the money that are being offered for burning really originate from.
Risk Harbour confessed to having misplaced the keys to the Multisig wallet, which led to the thought of burning these monies. This led them to the conclusion that the wallet should be blacklisted. On the other hand, many in the community think that burning these tokens would be the best course of action, given the enormous quantity of USTC that might be burned and the subsequent increase in token value.
Earlier, the community has suggested burning 800,000,000 USTC through an Update to the Terrad Client. Unfortunately, many validators choose not to vote, hence the proposition did not succeed. According to LUNC validator Lunanauts, the validators he contacted with were hesitant to vote because to concerns about potential legal consequences associated with modifying their nodes' code to destroy the money.

As an alternate, this most recent suggestion was put up since validators won't have to update their node code for the burn to happen. Since validators are "legally absolved" via this way, Lunanauts may think this idea should go through without any problems. Its effect is identical to that of the original plan.
From the looks of the vote thus far, the LUNC validators are still unconcerned with the most recent proposal. Only 8.67% of the total votes have been cast, according to the voting forum data. It is worth noting that 48.31% of the votes cast so far have been marked as "abstain," indicating that they are neither explicitly supporting or opposing the candidate.
There is still time for the proposal to fulfill the pass threshold; voting concludes on December 27, which is great news for the Terra Classic community. Also, considering that 50% is the pass criterion, the fact that just 5.63% have voted "No" is encouraging. Nevertheless, 40% of the total votes are still required to meet the quorum.
#USTC #LUNC #TerraLunaClassic