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Jury Deliberates on Instructions by Judge Rakoff

Published

10 months ago

March 27, 2024

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In the latest tussle between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs, the federal judge slammed both defendants and plaintiff’s attorneys for bringing irrelevant questions in the courtroom. Moreover, the judge offered initial instructions to the jury about key details in the fraud lawsuit.

Terra Vs SEC: Judge Submits Jury Instructions

As the lawsuit entered jury trial, Judge Rakoff provided the jury with a brief overview of the US SEC lawsuit against Terraform Labs and Do Kwon, as per the latest court filing. Both SEC and Terraform Labs (TFL) also had a final pretrial conference on the disputes between the parties.

In the preliminary jury instructions, Judge Rakoff highlighted major issues in the case. Also, the judge said more detailed instructions of law will replace this preliminary instruction after all evidence and closing arguments are presented by both parties.

The primary argument by the US SEC is that Terraform Labs and Do Kwon violated federal securities laws by intentionally engaging in two fraudulent schemes related to the purchase or sale of Terraform securities such as LUNA and UST (now USTC).

Judge Rakoff said the SEC alleges Terraform of false claims to investors that Chai Corp, a firm by Terra co-founder, used TFL technology to do business. In reality, Chai Corp never used Terraform’s technology.

The second fraud scheme is about UST stablecoin. SEC alleges Terraform falsely represented to investors that UST market value will always automatically adjust to $1.00, pegged to the US dollar.

The jury is deliberating on preliminary instructions, before a final instruction is presented. The judge shed light on the SEC allegations and defendants denying making any false statements.

Also Read: LUNC Price Can Hit $1 After Latest Terra Luna Classic v2.4.2 Upgrade

LUNA and LUNC Prices

Terra (LUNA) and Terra Classic (LUNC) prices rallied over 20% after Terra co-founder Do Kwon was released from prison by the Montenegro Supreme Court. However, the prices are under correction now due to profit booking and market-wide selloff.

LUNA price has further tumbled 12% in the past 24 hours after a 70% rally in a week. The price currently trades at $1.13, with a 24-hour low and high of $1.12 and $1.30, respectively. Furthermore, the trading volume has decreased by 30% in the last 24 hours, indicating a decline in interest among traders.

Meanwhile, LUNC price has fell 7% in the last 24 hours, with the price currently trading at $0.000154. The 24-hour high and low are $0.000154 and $0.000170, respectively. The trading volume has dropped 30% in the last 24 hours.

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