New Update in Terra (LUNA) v. SEC Case Today: Terraform Labs Lawyers Make a Surprise Move

New developments continue to occur in the case between Terra (LUNA) developer, cryptocurrency company Terraform Labs, and the SEC.

What is the Latest Situation in the Terra (LUNA) Case?

The case is set to go to trial in January 2024, pending the outcome of a motion for summary judgment argued on November 30.

A hearing was held on November 17, presided over by US District Court for the Southern District of New York Judge Jed S. Rakoff. The hearing focused on potential experts who could testify in the case.

However, it was a significant setback for Terraform Labs on November 22 when Judge Rakoff prohibited defense experts Unny and Parlor from testifying.

Adding to the company’s woes, Terraform Labs founder Do Kwon is facing extradition from Montenegro. The Principal Court in Podgorica approved the extradition after Kwon completed a four-month prison sentence for forgery of documents. The final decision on where to extradite will belong to the Montenegrin Minister of Justice.

Terraform Labs Lawyers Deliver Latest Reprimand Against SEC for Misrepresentation to Judge

In today’s new development, Terraform Labs’ legal team wrote a letter to Judge Rakoff, citing Utah federal Judge Robert J. Shelby’s decision in SEC v. Digital Licensing Inc. He recalled threatening to punish the SEC for misleading conduct in a separate case. Lawyers for Terra and Do Kwon raised this issue as a potential issue in the SEC’s lawsuit against them.

In the development that took place two days ago, Digital Licensing Inc., also known as DEBT Box. In the company case, the judge reprimanded the SEC for misrepresentation. Lawyers for Terraform Labs argue that the SEC may have taken similar action in its own cases.

*This is not investment advice.