SEC Clashes With Do Kwon and Terraform Labs in Court, Alleging ‘Clear, Undisputed’ Fraud
Last week, lawyers representing Terraform Labs and its ex-CEO Do Hyeong Kwon (Do Kwon) moved to dismiss the lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC). In response, the SEC has countered with a motion of its own, asserting the accountability of both the company and Kwon. The commission maintains that the evidence amassed by the prosecution is “clear, undisputed and overwhelming.” SEC Files Motion for Summary Judgment Against Terraform Labs and Do Kwon On November 2, 2023, the U.S. Securities and Exchange Commission (SEC) advanced its case in the ongoing Terra litigation by filing a motion for summary judgment. The regulatory body claims to hold “undisputed” proof of the purported infractions committed by former Terraform Labs CEO Do Kwon and the company itself. The SEC’s filing alleges that “Terraform and Kwon orchestrated a fraudulent scheme that ultimately led to $45 billion in market loss, including devastating losses for U.S. investors.”