Do Kwon and Terraform Labs ask judge to toss SEC’s lawsuit

Terraform Labs co-founder Do Kwon has asked for a United States district judge to turn down the securities and scams suit from the federal securities regulator, declaring it has actually stopped working to prove they did anything wrong.In an Oct. 27 filing to a New York District Court, legal representatives for Kwon and Terraform argued its cryptocurrencies Terra Luna Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR) and its Mirrored Assets (mAssets) that reflect stocks on-chain are not securities as the Securities and Exchange Commission alleged.” After two years of examination, the conclusion of a discovery duration that resulted in the taking of more than 20 depositions, and the exchange of over two million pages of documents and data, the SEC is evidentiarily no closer to showing that the Defendants did anything incorrect,” the legal representatives wrote.They included the “evidence does not exist to support a lot of the SECs claims” and asserted the regulator “understood some of its accusations were incorrect”– in particular, an allegation that Kwon and Terraform secretly moved millions into Swiss savings account for their own gain.Kwons attorneys declared the SEC is trying to draw parallels in between Terraform and FTX. Source: CourtListenerIn its suit versus Kwon and Terraform submitted in February, the SEC claimed the pair sent 10,000 Bitcoin (BTC) to a Swiss banks and withdrew $100 million. It likewise declared they dedicated fraud by “repeating false and misleading statements.”” The SEC knew this allegation was false when it filed this case,” Kwons lawyers wrote. “This is made even worse by the indisputable truth that TFL had no consumers, and hence no consumer funds.” The $40 billion Terra ecosystem collapsed in May 2022 after its USTC algorithmic stablecoin lost its U.S. dollar peg.Related: Terraform co-founder Shin blames procedure for collapse throughout trial in S. KoreaKwon and Terraform likewise moved to omit the viewpoint of the SECs specialists including a report from Rutgers University economics professor Bruce Mizrach which they called “junk science.” Judge Jed Rakoff, who manages the case, denied Terraforms earlier attempt to toss the lawsuit.Kwon is presently detained in Montenegro and has previously asked the court to decline the SECs motion to extradite and interview him in the U.S.Magazine: How to protect your crypto in an unpredictable market– Bitcoin OGs and professionals weigh in