Cryptocurrencies Terra and TerraUSD recognized as securities
The Federal District Court for the Southern District of New York recognized the Terra (LUNA) and TerraUSD (UST) cryptocurrencies issued by the startup Terraform Labs as securities.
Judge Jed Rakoff made the verdict in a case against Terraform Labs, which the U.S. Securities and Exchange Commission accuses of trading unregistered securities. By assigning this status to Terra and TerraUSD, Rakoff sided with the regulator and actually found the coin issuer guilty of illegally selling securities.
On January 29, they plan to select a jury who will determine whether Terraform Labs founder Do Kwon deceived clients by convincing them of the reliability of the algorithmic stablecoin TerraUSD.
