Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»ALTCOIN NEWS»SEC Deems MATIC, LUNC, CHZ Securities as Securities in Leaked Court Filings
ALTCOIN NEWS

SEC Deems MATIC, LUNC, CHZ Securities as Securities in Leaked Court Filings

By Crypto FlexsJuly 16, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
SEC Deems MATIC, LUNC, CHZ Securities as Securities in Leaked Court Filings
Share
Facebook Twitter LinkedIn Pinterest Email
  • SEC Classifies Chiliz, Polygon, Terra Luna Classic as Securities in New Filings
  • SEC ramps up crackdown on DeFi, targeting MetaMask developer Consensys
  • The Ethereum ETF approval in May signals a shift in the SEC’s stance on alternative assets.

In leaked court documents, the Securities and Exchange Commission (SEC) explains why it is cracking down on several cryptocurrencies, including Polygon (MATIC), Terra Luna Classic (LUNC), The Sandbox (SAND), Decentraland (MANA), and Chiliz (CHZ).

Chiles, Matić Under Scrutiny by SEC

The SEC believes that these cryptocurrencies were originally offered to investors as investment contracts, which gave rise to the companies associated with the tokens.

“SEC Explains Why These 5 Tokens Are Securities: MATIC MANA CHZ SAND LUNA” Polygon has publicly stated that it intends to develop and grow its business through investment income from private and public fundraising activities. Through its asset trading platform, MATIC will offer early contributors a discounted price when purchasing MANA.

— Wu Shuo Blockchain (@wublockchain12) July 15, 2024

The SEC highlighted the April 2021 sale of 19% of MATIC’s supply, when Polygon Labs reportedly raised $5 million by selling unregistered securities on Binance through an initial exchange offering (IEO). The funds, which were sold for $0.00263, were used to develop the blockchain, according to court documents.

Similar claims were made about CHZ, a sports-focused blockchain with over 100 officially licensed crypto tokens tied to popular sports franchises. Citing Chiliz’s whitepaper, the SEC analyzed CHZ’s token economics, highlighting that 58% of the token is earmarked for operational expenses.

SEC Declares LUNC Company as Equity?

Citing the Terra Luna Classic case, the court documents describe TerraForm Labs’ original communications regarding LUNA tokens as a promise of equity in the company. The SEC claims that the 2018 LUNA token sale agreement explicitly stated that the funds were to be raised “for the purpose of building and operating the systems developed by Terraform.”

One of the outcomes of the Terra-SEC contract is the circulating supply. #away and #USTC It will be updated…

Wallets belonging to TFL will be removed from roaming data. This will happen more frequently in the coming days.

Currently; you have seen some $USTC and… pic.twitter.com/nGNlTvG6WK

— Crypto News Portal (@TerraNewsEN) June 17, 2024

LUNC’s place in the SEC puzzle may vary. Just last month, the SEC secured a landmark $4.5 billion settlement with LUNC’s parent company, TerraForm Labs, along with other tokens listed in legal documents.

Following the bankruptcy of TerraForm Labs earlier this year, LUNC and USTC tokens are likely to be removed from circulation, as the digital assets are likely to be used to cover a $4.5 billion fine imposed by U.S. financial regulators.

On the other side

  • Despite the long-running debate over cryptocurrencies being sold as unregistered securities, the SEC approved an Ether spot ETF on May 23, 2024.
  • The SEC declared Ethereum (ETH) a security in 2023, but closed its investigation in June 2024 after concluding that Ethereum was a commodity and therefore no enforcement action was necessary.

Why this matters

Cryptocurrency marketing and business growth often comes under legal scrutiny due to unclear regulations. On the other hand, defining the boundaries between securities and commodities can help create a safer environment for cryptocurrency investors.

Check out DailyCoin’s most popular cryptocurrency news:

Trump-Themed MAGA Coin Surges 40% After Assassination Attempt
Analysts Comment on Solana ETF Outlook Amid New Filings

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The XRP market value surpasses Shopify, Verizon, and Citigroup. Whales sell 40m coins.

September 18, 2025

‘Fat Apps’ can lead the cryptographic story in the next few months.

September 11, 2025

Binance explodes 466m LUNC with oblivion: revival play or special effect?

September 4, 2025
Add A Comment

Comments are closed.

Recent Posts

Nebeus Overfunds Equity Crowdfunding Campaign With €3.6M Raised, Reflecting Growing Demand For Regulated Crypto–Finance Solutions

September 24, 2025

Next Binance Coin (BNB) Price Rally 3 Catalysts that can supply fuel

September 24, 2025

Ether Leeum World Fair Announcement

September 24, 2025

SOL Leverage Longs Jump Ship, is it $ 200 next?

September 24, 2025

Navigating Policy & Regulation in Blockchain

September 23, 2025

Flipster Debuts Market’s First USD1 Perps For BTC, ETH, SOL, XRP, And DOGE

September 23, 2025

BYDFi Joins Korea Blockchain Week 2025 (KBW2025): Deepening Web3 Engagement

September 23, 2025

MEXC Brings Immersive Experience With ‘0 Fee Lounge’ To Token2049

September 23, 2025

Moonbirds And Azuki IP Coming To Verse8 As AI-Native Game Platform Integrates With Story

September 23, 2025

Buying NFT is like buying a Mickey Mouse T -shirt and an IP.

September 23, 2025

ETH-Based Little Pepe Raises $26M In Presale

September 23, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Nebeus Overfunds Equity Crowdfunding Campaign With €3.6M Raised, Reflecting Growing Demand For Regulated Crypto–Finance Solutions

September 24, 2025

Next Binance Coin (BNB) Price Rally 3 Catalysts that can supply fuel

September 24, 2025

Ether Leeum World Fair Announcement

September 24, 2025
Most Popular

Global Digital Asset-Backed Exchange Traded Product AUM Increased 5% in January on BTC Spot ETF Approval – Blockchain News, Opinion, TV & Careers

February 9, 2024

Top 5 Cryptocurrencies with the Most Potential for 100x Returns

February 20, 2024

The German government has transferred an additional $900 million in Bitcoin, increasing pressure to sell BTC.

July 8, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.