Terraform Labs Wants Access to FTX Wallets in Fraud Case
A recent report revealed that Terraform Labs has sought permission from a Judge to subpoena information from the bankrupt FTX crypto exchange. The data requested is said to be crucial in Terraform Labs ’ defense against fraud charges brought forth by the U.S. Securities and Exchange Commission (SEC). advertisement Blaming Short Sellers and Alameda Research The SEC’s lawsuit, filed in February, alleged that Terraform Labs conducted an unregistered securities offering by issuing TerraUSD and Luna tokens without proper compliance with securities regulations. The SEC contended that these tokens were, in essence, investment contracts subject to federal securities laws, but Terraform Labs failed to register them accordingly. Do Kwon, co-founder and former CEO of Terraform Labs , was named as a defendant in the lawsuit due to his prominent role in the company’s operations and alleged involvement in the issuance of the tokens. ...