• Do Kwon’s lawyers have filed a motion to dismiss SEC charges against Terraform Labs and its founders.
• South Korean authorities have indicted Daniel Shin, the co-founder of Terraform Labs, and eight other individuals for various charges.
• The SEC has argued that the Terra stablecoin, Luna, and other digital assets created by Terraform Labs are securities while Do Kwon’s legal team has argued that they are not.
Do Kwon’s Lawyers File Motion to Dismiss SEC Charges
Do Kwon’s legal representatives in the U.S. have filed a motion in the Southern District Court of New York to dismiss an SEC’s charges against him. They argue that the collapsed Terra UST stablecoin and Luna tokens are not securities, and as such the agency lacks jurisdiction over the matter.
Daniel Shin Indicted by South Korean Authorities
Per a Bloomberg report, Daniel Shin, the co-founder of Terraform Labs, and eight other individuals have been indicted by South Korean authorities on several charges; including violating capital markets law, illegal trading, and breach of trust. The prosecutors have reportedly seized around $184.7 million (246.8 billion won) from those involved in the project.
SEC Argues That Digital Assets Are Securities
The SEC filed charges against Do Kwon and Terraform Labs last Febuary., for defrauding investors of billions of dollars through their now-defunct algorithmic stablecoin and other crypto assets. According to their 47-page filing, they argued that the Terra stablecoin, Luna, and other digital assets created by Terraform Labs are securities subject to regulation under their authority; though Congress is yet to grant them this authority officially.
DoJ Probes Former Employees for Answers
The US Department of Justice is reportedly investigating some former employees at Terra in order to get answers regarding how billions were lost through their algorithmic stablecoin project before it collapsed last December 2020 with no explanation from its creators or developers.
While authorities have made it clear that Shin was involved in causing irreparable damage to investors globally through his involvement with the project; his lawyer has argued that he has no hand in its collapse due to quitting two years prior before it happened.