US court to rule on Terraform Labs push to dismiss SEC lawsuit within a month

A U.S. court will rule within a month on Terraform Labs’ push to dismiss the SEC lawsuit, CoinDesk reported. Judge Rakoff said the decision on the motion to dismiss would be announced on or before July 14. Foresight News previously reported that in February 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in the U.S. District Court for the Southern District of New York, accusing Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon of orchestrating billions of dollars in encrypted asset securities. Fraud, involving algorithmic stablecoins and other cryptoasset securities, in violation of the registration and anti-fraud provisions of the Securities Act and the Exchange Act. In April, Terraform filed to dismiss the charges, claiming that the SEC had not asserted jurisdiction over the company or Kwon, and raising disputes related to the Administrative Procedure Act and the principles at issue.