The judge discussed with Do Kwon above the SEC, says UST, LUNA Securities.

A federal judge on Thursday ruled that Terraform Labs and its founder Do Kwon offered and sold unregistered securities, including LuNA and UST, in the form of cryptocurrencies, in a major victory for the Securities and Exchange Commission (SEC).

Judge Jed Rakoff of the United States District Court for the Southern District of New York granted the SEC summary judgment that Terraform offered unregistered securities and security-based swaps — meaning the SEC's lawsuit against the company and the company will not be litigated. Founder goes to court.

The jury in the case is not yet settled, only now they will be asked to rule on other securities fraud cases, such as Kwon misleading customers about the safety of Terraform's financial products, including the algorithmic stable coin UST.

In May of last year, the UST—an algorithmically stable coin meant to remain at par with the U.S. dollar—had no currency reserves.He fellwiping out $60 billion worth of value and sparking a crypto winter that has yet to subside.

The SEC, in addition to seeking to classify Terraform's issuance of multiple cryptocurrencies as illegal unregistered securities offerings, accused Kwon of conspiring to mislead investors about the nature and safety of the UST $1.00 peg.

In late October, Kwon's lawyers tried. Dismissing the case, the SEC argued that Terraform failed to provide securities or prove malpractice. On at least one of these points, the judge was unconvinced.

If the trial goes ahead as scheduled, jury selection will begin Jan. 29 in Lower Manhattan.

The SEC case is one of several legal woes currently plaguing Kwon. Department of Justice in March Indictment of the founder of crypto with eight criminal charges. That same day it was Kwon. Caught in Montenegro After being charged in his native South Korea.

Now, US, South Korean and Montenegrin prosecutors all want a piece of him. Montenegrin judge earlier this month It stopped The US government's extradition request for Kwon, which is currently under review.