Do Kwon Lawyers Invoke XRP Victory to Dismiss SEC Case on Terra Collapse

1y ago•

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Lawyers of former Terra boss Do Kwon have cited the recent XRP victory in the SEC lawsuit in a bid to dismiss the agency’s case against Kwon and Terra.

Do Kwon’s lawyers have turned to the recent victory secured by Ripple and XRP against the SEC to bolster their bid to dismiss the regulatory watchdog’s lawsuit against Terraform Labs and Kwon.

In a supplementary document filed on July 18, the legal team highlighted the decision made by Judge Analisa Torres in the SEC v. Ripple Labs case, which ruled that the digital asset XRP was not a security.

The defendants’ lawyers assert that the SEC’s claims against the tokens UST, LUNA, wLUNA, and MIR lack merit, drawing parallels to the Ripple ruling. According to the Ripple decision, certain sales of XRP did not meet the criteria to be classified as investment contracts under the Howey test.

The document argues that the SEC does not allege that UST was sold to anyone; instead, it was created through the Terra blockchain. Moreover, the sales of LUNA and MIR on secondary markets would not qualify as investment contracts based on the reasoning applied in the Ripple ruling.