Federal Court Holds Terraform Crypto Assets Are Securities Including Stablecoin in Combination With Related Yield Protocol
UST, LUNA, and MIR crypto assets deemed securities under Howey in newest New York federal court decision
On Dec. 28, 2023, Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York issued his eagerly anticipated second opinion in the Securities and Exchange Commission’s (SEC’s) ongoing battle with Terraform Labs Pte. Ltd. and its founder, cryptocurrency entrepreneur Do Hyeong Kwon. Judge Rakoff ruled that several Terraform-issued crypto assets were securities under the Supreme Court’s 1946 Howey test, and granted summary judgment for the SEC in finding that the defendants violated U.S. law by failing to register the offerings of two such securities. The court ruled that a related set of fraud claims advanced by the SEC will go to trial.
Keep Up to Date in a Changing World
