Terraform Labs Lawyers Demand Class Action Against Company Be Rejected
Lawyers for Terraform Labs (TFL) and its CEO, Do Kwon, have filed a motion in the Northern District of California court to dismiss a class action lawsuit against the company and its CEO.
The lawsuit, which was filed in June 2022 by investors, accused the defendants of selling unregistered securities as well as making false claims about the stability of the TerraUSD (UST) stablecoin and the associated LUNA token.
In their motion, TFL’s lawyers argued that US law “does not apply” to protocols developed and used abroad, and that the plaintiffs had failed to provide sufficient evidence that the alleged fraud was domestically based.
Furthermore, the lawyers had previously requested the US court to dismiss the charges brought by the US Securities and Exchange Commission, and pointed out that UST does not fall within the jurisdiction of the department as it is a currency.
Additionally, a court in South Korea had previously ruled that the LUNA token did not constitute a security.
