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A U.S. federal judge has ruled in favor of the Securities and Exchange Commission (SEC) in a case against Terraform Labs and its former CEO Do Kwon. According to a U.S. court’s decision, Terraform Labs and Do Kwon sold two unregistered securities , referring to the LUNA, UST, and MIR tokens. District Court Judge Jed Rakoff made the decision on Dec. 28. The court cited Kwon’s previous commentary, which stated that LUNA holders simply need to “[s]it back and watch [him] kick-ass” to conclude that LUNA meets the Howey test. Concerning the MIR token, the court held that the defendants could not seriously dispute that they caused MIR holders to expect profits from a joint enterprise based on Terraform’s efforts to develop, maintain, and evolve the Mirror Protocol. “In other words, that MIR passes the Howey test with flying colors.” Court’s filing You might also like: Terraform Labs and SEC agree on confidentiality terms as trial ...

Owing to the crash of the Terra ecosystem, Do Kwon was the talk of the town in mid-2022. However, as the year progressed, and other companies fell like dominoes, the talking subjects changed. However, it seems like we’re back to square one, with the focus again on the aforementioned crypto fugitive. A recent Bloomberg report brought to light that Do Kwon and Terraform Labs transferred over 10,000 Bitcoin out of their ill-fated project and allegedly turned some tokens into cash via a Swiss bank. The accusations were made in a lawsuit filed by the SEC. The regulatory agency noted that the losses incurred mounted up to at least $40 billion.  The SEC says the crypto scheme led to losses of at least $40 billion https://t.co/EHs28xY3tN — Bloomberg Crypto (@crypto) February 17, 2023 Around $100 million in fiat withdrawn Kwon and Terraform Labs allegedly transferred ~10k Bitcoin into a cold wallet. The complaint noted that they had been periodically transf...