KEY POINTS
- Terraform Labs' UST, LUNA, wLUNA and MIR tokens, are investment contracts, and therefore, are securities, the court said
- Judge Jed Rakoff made it clear that the sale of these assets were unregistered, and violated the country's Securities Act
- Kwon's fraud trial is scheduled for Jan. 29
Terraform Labs and its embattled former CEO, Do Kwon, have emerged victorious in a case brought against them by the U.S. Securities and Exchange Commission. However, the outcome of the case does not indicate an absolute defeat for the regulator, as the presiding judge declared that both TerraUSD (UST) and LUNA, the algorithmic stablecoins in question, are securities.
