The SEC requested a simplified solution for the Terraform Labs case.
The United States Securities and Exchange Commission (SEC) has approached the Federal Court of the Southern District of New York requesting an expedited review of the case against Terraform Labs (TFL) and its founder Do Kwon.
The documents submitted by the commission state:
"Based on the evidence, there is no doubt that investors were contributing funds using both fiat and cryptocurrency assets."
The SEC has rephrased its allegation of conducting illegal transactions with unregistered securities. The agency asserts that the evidence unequivocally suggests that Kwon misled investors by actively promoting the Terra project and LUNA tokens.
The agency emphasizes:
"Any reasonable jury would reach the conclusion that Kwon is responsible for the violations committed by Terraform."
The SEC also noted that the scheme of pooling investments into a joint venture with the expectation of profits predominantly from the efforts of the founders meets the criteria of the Howey Test and justifies a verdict in favor of the regulatory body.
Conversely, TFL and Kwon had previously submitted a legal petition arguing that the Commission failed to prove that the company offered securities.
Representatives of Terraform stated:
"After two years of investigations, the completion of the disclosure stage, during which more than 20 depositions were taken and over two million pages of documents and data were exchanged, the SEC has not moved any closer to proving the defendants' wrongdoing."
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