At Extreme Investor Network, we strive to bring you the latest and most valuable information in the world of trading, investing, and the stock market. Today, we have some significant updates in the crypto and securities space that you need to be aware of.
Terraform Labs, along with founder Do Kwon, were recently found liable for civil fraud charges by a Manhattan jury. This ruling came after the SEC accused Terraform Labs and Do Kwon of misleading investors about the stability of TerraUSD. The case against Terraform Labs gained traction in 2023, with Judge Rakoff criticizing the SEC vs. Ripple ruling. In December 2023, Judge Rakoff ruled that Terraform Labs and Do Kwon breached US securities laws by not registering TerraUSD and Luna as securities. This ruling has not only impacted Terraform Labs but has also set a precedent for the SEC to pursue wins against other entities like Coinbase.
Speaking of Coinbase, the US Court of Appeals for the Second Circuit recently made a partial reversal and affirmation of a judgment from February 2023. Coinbase Chief Legal Officer Paul Grewal responded to the ruling, emphasizing the importance of contracts in federal securities law. The case against Coinbase dates back to 2022 when users alleged that Coinbase sold 79 tokens illegally as securities, including popular ones like DOGE, SHIB, SOL, and XRP. The SEC also charged Coinbase for operating as an unregistered securities exchange, broker, and clearing agency in June 2023. While the court partially granted a Motion to Dismiss in March 2024, charges for operating as an unregistered securities exchange still stand.
As a result of these developments, Coinbase shares saw a decline in the week ending April 5. Stay informed and stay ahead in the world of trading and investing by following Extreme Investor Network for the latest updates and insights.
