Judge rules that Terraform Labs offered and sold LUNA as unregistered security, Barry Silbert leaves Grayscale’s board and China takes action against Tether.
A United States federal judge has ruled in favor of the Securities and Exchange Commission on claims that Terraform Labs and its former CEO, Do Kwon, offered and sold two unregistered securities. The court granted summary judgment in favor of the SEC, which alleged that Terraform Labs and Kwon offered and sold LUNA, TerraUSD and Mirror as unregistered securities. The court cited a previous comment from Kwon, stating that LUNA holders simply need to [s]it back and watch [him] kick ass, to conclude LUNA satisfied the Howey test.
Crypto asset manager Grayscale lodged an amended S-3 filing with the United States Securities and Exchange Commission on the same day Barry Silbert the CEO of Grayscales parent company, Digital Currency Group announced his resignation from Grayscales board of directors. Some crypto market commentators speculate that Silberts departure could significantly increase the odds that Grayscale will successfully convert its Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund. The asset manager is currently awaiting a decision on this from the Securities and Exchange Commission.
Chinas Supreme Peoples Procuratorate the highest national agency responsible for legal prosecution in mainland China has warned the public against using Tether as an intermediary to trade yuan with other fiat currencies. The agency issued a statement urging local officials to implement stricter measures against Tether stablecoin use in cross-border foreign exchange transactions, claiming using Tether as a medium of exchange between the local and foreign currencies is illegal.
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Source: https://cointelegraph.com/magazine/luna-meets-howey-test-barry-silbert-resigns-grayscale-hodlers-digest-dec-24-30/