Are terraform labs digital assets securities?

June 15 (Reuters) - A U.S. judge considered whether the digital assets created by Terraform Labs were securities at a hearing on Thursday, a question central to the U.S. Securities and Exchange Commission’s fraud case against the company and its founder Do Kwon.

Who are Kwon & terraform labs?

Kwon and Terraform Labs were behind two cryptocurrencies whose implosion roiled crypto markets around the world last year. U.S. District Judge Jed Rakoff in Manhattan denied their motion to dismiss allegations that they defrauded investors and sold billions of dollars in digital assets that were unregistered securities.

Will terraform labs comply with a US court subpoena?

A US court has ordered the chief executive of collapsed stablecoin operator Terraform Labs to comply with subpoenas from the regulator seeking documents and materials related to the sale of potential unregistered securities.

Did Kwon and terraform labs violate sec rules?

At first, Kwon denied being served the subpoenas, and then he and Terraform Labs countersued the SEC. Kwon and Terraform Labs argued that the SEC broke its own rules by failing to keep the subpoenas confidential, and also claimed the company did not have a significant business presence in the US.