Do Kwon Lawyers Filed A Motion To Dismiss The SEC’s Lawsuit
In the latest development in the ongoing SEC vs. Terra legal battle, lawyers representing Terra co-founder Do Kwon have filed a motion to dismiss the SEC’s lawsuit against their client. According to the filing, the lawyers argue that the fraud allegations leveled against Do Kwon are unfounded because $LUNA, the cryptocurrency issued by Terra, is not a security but rather a currency.
The lawyers went on to argue that crypto, at best, is a commodity and that currencies are issued by central banks. They pointed out that despite what the crypto community on Twitter might believe, this is just a fact. They also noted that $LUNA is likely considered to be all three – a currency, a commodity, and a security.
However, the lawyers acknowledge that this argument is unlikely to hold up in court. They noted that crypto is a unique asset class that contains many different characteristics, and as such, its regulation defies traditional government oversight.
The SEC also alleged that Terra had made false and misleading statements to investors, including claims that $LUNA was backed by a reserve of fiat currencies.
The legal battle between Terra and the SEC is just one of many ongoing disputes between regulators and the cryptocurrency industry. As the crypto market continues to grow and evolve, it is likely that we will see more such legal battles in the future.
In conclusion, lawyers representing Terra co-founder Do Kwon have filed a motion to dismiss the SEC’s lawsuit against their client. They argue that $LUNA is not a security but rather a currency and that crypto is a commodity at best. However, they acknowledge that this argument is unlikely to hold up in court given the unique characteristics of the crypto asset class. The ongoing legal battle between Terra and the SEC highlights the ongoing regulatory challenges facing the cryptocurrency industry.
