Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
Home»ADOPTION NEWS»The SEC branded Terraform Labs a “house of cards” as the civil trial began.
ADOPTION NEWS

The SEC branded Terraform Labs a “house of cards” as the civil trial began.

By Crypto FlexsMarch 28, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
The SEC branded Terraform Labs a “house of cards” as the civil trial began.
Share
Facebook Twitter LinkedIn Pinterest Email

The SEC accused Terraform Labs of building a fraudulent empire as its civil trial begins more than a year after the lawsuit was filed.

The U.S. Securities and Exchange Commission (SEC) has launched a scathing indictment against Terraform Labs PTE Ltd., accusing the blockchain company of creating what SEC lawyers call a “fraud empire.” The civil trial, which began this year, follows a lawsuit filed by the SEC in February 2023. The legal action follows the dramatic collapse of the Terra ecosystem in 2022, resulting in the loss of tens of billions of dollars in investor assets almost overnight.

The lawsuit marks a significant expansion of the SEC’s scrutiny of blockchain companies, especially those involved in cryptocurrency. SEC attorney Devon Staren presented Terraform Labs as a “house of cards,” an operation built on shaky foundations destined to fail. According to Staren, following the collapse, investors were left with virtually nothing, raising questions about the accountability and transparency of these blockchain ventures.

The SEC’s lawsuit focuses on the sale of cryptocurrency assets, which the commission considers securities. Founded by Do-Do Kwon, Terraform Labs is known for its stablecoin TerraUSD (UST) and its sister token Luna. The SEC’s argument is that the company failed to register these cryptocurrency assets as securities, misleading investors about their safety and potential returns. The SEC claims that UST and Luna’s dual token setup is inherently unstable, a claim Terraform Labs and its management refute.

Terraform Labs refuted the SEC’s claims, arguing that their tokens do not fit the traditional definition of a security and that the company has always aimed to comply with existing regulations. The company’s defense will center around the technicality of cryptocurrency definitions and the applicability of securities laws to digital assets, a topic that has been a gray area in legal and regulatory circles.

The outcome of this trial is being closely watched in the cryptocurrency industry as it could set a precedent for how similar cases are handled in the future. If the SEC is successful, it could embolden the commission to more aggressively pursue other cryptocurrency companies, potentially reshaping the regulatory landscape for digital assets in the United States.

The case also highlights broader implications for the cryptocurrency market, particularly with regard to investor protection and liability of cryptocurrency companies. The collapse of the Terra ecosystem had a ripple effect throughout the industry, contributing to a severe downturn in the market and calling into question the viability of algorithmic stablecoins.

The SEC’s aggressive stance reflects a broader push for regulatory clarity in the rapidly evolving world of cryptocurrencies. As the industry matures, it comes under increased scrutiny from regulators around the world concerned about potential risks to investors and the financial system as a whole.

The trial is expected to examine the complex interplay between innovation in the blockchain space and the need for consumer protection. This proceeding is likely to influence future regulatory approaches and could determine the fate of Terraform Labs and its management. As the SEC continues to pursue what it believes to be a fraudulent empire, the cryptocurrency industry is poised for a potentially transformative shift as a result of this landmark case.

Image source: Shutterstock

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

TRX Price Prediction: TRON targets $0.35-$0.62 despite the current oversold situation.

October 26, 2025

BTC RSI hits April low as Coinbase premium turns red.

October 18, 2025

Crypto Exchange Rollish is expanded to 20 by NY approved.

October 2, 2025
Add A Comment

Comments are closed.

Recent Posts

Whale.io Confirms First Airdrop For Crock Dentist NFT Holders

October 29, 2025

BTC And XRP Prices Fluctuate Dramatically. WOAHash Helps Holders Earn $9,900 In Daily Returns.

October 29, 2025

Acre Launches V2 Platform, Enabling Bitcoin Holders To Earn 14% APY (est.) From Self-Custody

October 29, 2025

BitcoinOS $BOS Token Is Live On Binance Alpha And Top Tier CEX Listings, Advancing Institutional BTCFi

October 29, 2025

MEXC Maintains Strong Financial Stability With Over 100% Proof Of Reserve Across Major Assets

October 29, 2025

Australia provides clarity on cryptocurrency regulation with new guidelines

October 29, 2025

Stake USDT To Earn BTC With Up To 600% APR

October 28, 2025

Coinbase Acquires Echo, Leading On-Chain Capital Raising Platform in $375 Million Deal

October 28, 2025

US Bitcoin reports holdings of 3,865 BTC after recent acquisition

October 27, 2025

Swiss Bitcoin App Relai Acquires MiCA License In France

October 27, 2025

Tapzi Presale Gains Traction with DeepSnitch AI and Bitcoin Hyper

October 27, 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

Whale.io Confirms First Airdrop For Crock Dentist NFT Holders

October 29, 2025

BTC And XRP Prices Fluctuate Dramatically. WOAHash Helps Holders Earn $9,900 In Daily Returns.

October 29, 2025

Acre Launches V2 Platform, Enabling Bitcoin Holders To Earn 14% APY (est.) From Self-Custody

October 29, 2025
Most Popular

Bitcoin Rally Amid ETF Hopes and Market Activity

December 14, 2023

Whale Bag PEPE, MOG Coin Bulk Purchase: No More Fear, Only Greed?

November 23, 2024

Bitcoin has taken 3%of Trump tariffs and $ 75 million in Longs.

August 4, 2025
  • 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.