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.
Kwon and Terraform Labs were behind two cryptocurrencies whose implosion roiled crypto markets around the world last year.
According to the SEC's complaint, Terraform Labs and Kwon misled investors about the stability of UST, and claimed that the firm's crypto tokens would increase in value.
Terraform Labs and Kwon argue the case should be dismissed because its digital assets do not fit the definition of securities and the SEC lacks authority over the industry.
The case is SEC v. Terraform Labs Pte Ltd. et al., No.
Persons:
Kwon, Jed Rakoff, TerraUSD, Rakoff, shouldn’t, ”, “ We’re, Devon Staren, Jody Godoy, Lincoln
Organizations:
Terraform Labs, U.S . Securities, Exchange, U.S, U.S ., UST, SEC, Court, Southern District of, Thomson
Locations:
U.S, Manhattan, TerraUSD, Southern District, Southern District of New York, New York