SEC Takes Terraform Labs to High-Stakes Trial: Judge Provides Jury Instructions
In a courtroom clash between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs, as well as its founder Do Kwon in absentia, Judge Rakoff reprimanded both parties for straying off-topic during the proceedings.
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Let’s delve into the initial instructions provided to the jury, outlining crucial elements of the fraud lawsuit.
Preliminary Instructions and Allegations
Judge Rakoff commenced the jury trial by summarizing the SEC’s allegations against Terraform Labs and Do Kwon, thereby establishing the foundation for the trial. The SEC accuses Terraform Labs and Kwon of violating federal securities laws through two fraudulent schemes pertaining to Terraform securities, specifically LUNA and UST (now USTC) coins.
According to the SEC, Terraform misled investors by falsely asserting that Chai Corp, associated with Terra’s co-founder, utilized TFL technology for its operations. Furthermore, the SEC alleges that Terraform misrepresented the stability of the UST stablecoin, assuring investors that its value would always be pegged to the U.S. dollar at $1.00.
Trial Dynamics and Implications
The trial began with Terraform Labs defending against allegations of civil fraud that led to the collapse of the TerraUSD stablecoin in 2022.
In the meantime, Do Kwon, the co-founder of Terraform Inc., who is a co-defendant in the lawsuit, is physically absent from the trial as he awaits extradition decisions in Montenegro while under house arrest.
Now, as the trial is in its early stages and establishing its groundwork, many have been curious about its potential impact on Terra Lab’s tokens. Let’s explore:
Could the Trial Affect LUNA and LUNC Prices? Examining Price Predictions
Recent enhancements to Terra Luna Classic, including version 2.4.2 with IBC-Hooks, have propelled LUNA token prices to reach their highest point in seven days, at $1.182606 per LUNA/USD.
Over 105 billion LUNC tokens have been burned, notably by Binance, potentially increasing scarcity and value. However, a slight decrease in token burning aligns with rising prices.
Despite this, there is a growing demand evident in the increasing number of LUNC wallet holders, leading us to believe that there is considerable optimism for LUNC’s future.
Currently, LUNC is priced at $0.000161, with a market capitalization of $939.80 million and a circulating supply of 5.83 trillion LUNC. The Fear & Greed Index registers 83, indicating extreme greed.
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