• The United States SEC has been on an expedition to provide the US government with the exact context of the local and global crypto market, whereby the Do-Kwon and Terra LUNA case is expected to set an example to the rest of the crypto industry.
• Terra LUNA price gained approximately 6 percent in the past two weeks to trade around 41 cents in the spot market, amidst a short-term crypto outlook.

The U.S. SEC has filed with a New York District Court to have the motion to allow the use of Do Kwon’s written evidence be accepted in the court process. Filed on September 22, the SEC noted that it respectfully agreed that the court should depart from the established procedures and accept Kwon’s writing from the country, Montenegro, where he is in prison.

Notably, Kwon was sentenced in Montenegro for four months for running a multi-US-billion-dollar fraud scheme and forging passports. The case has gotten complicated for the former Bitcoin whale and blockchain architect, as he might get to serve another lengthy prison time if the court finds him guilty.

The SEC Fights to Regulate the Crypto Market Via Decades-old Securities Law

The decades-old financial regulatory scope is undeniably under pressure to accommodate the space for emerging forms of money through the crypto market. As a result, the Terra LUNA community is expected to be the fighting ground as the SEC spearheads the fight with Kwon’s attorneys, despite the interim CEO at Terra Foundation in place of Kwon.

Notably, the SEC has been under pressure to deliver wins against the crypto market for the United States dollar, amid the high inflation coupled with the high growth rate for the BRICS movement, which is led by China, Russia, and India. SEC noted:

“…from April 2018 until the scheme’s collapse in May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions. These included “mAssets,” security-based swaps designed to pay returns by mirroring the price of stocks of US companies, and Terra USD (UST), a crypto asset security referred to as an “algorithmic stablecoin” that supposedly maintained its peg to the U.S. dollar by being interchangeable for another of the defendants’ crypto asset securities, LUNA,”

The pressure to win the Terra LUNA and Do Kwon case follows a losing streak in court proceedings and rulings. For instance, the Judge presiding over the SEC vs. Ripple case ruled in a July summary judgment that the XRP transactions executed by Ripple or its executives to crypto exchanges do not constitute investment contracts.

Recently, the Judge presiding over the SEC vs. Grayscale Investments ruled that the SEC ought to approve a spot Bitcoin ETF since it approved a futures product. In another case involving Uniswap, the presiding Judge Katherine Polk Failla, of the U.S. District Court for the Southern District of New York, dismissed allegations by a group of crypto investors hoping to hold Uniswap liable for orchestrating crypto scam tokens traded on the DEX platform.