Terraform Crypto Assets Judged to be Securities in SEC Suit (1)

Four Terraform Labs cryptocurrencies constituted securities that were illegally offered and sold without registration, a federal court in New York said in a liability ruling.

Judge Jed S. Rakoff didn’t determine damages on that issue and reserved separate Securities and Exchange Commission fraud claims for trial. He ruled in favor of Terraform and co-founder Do Hyeong Kwon on a third set of claims, for securities-based swap violations. Those claims are dismissed.

Kwon, who is incarcerated in Montenegro, wasn’t entitled to submit a declaration opposing summary judgment, Rakoff said for the US District Court for the Southern District of New York. ...