The legal teams of Terraform Labs and the U.S. Securities and Exchange Commission (SEC) have sparred over the information provided by a whistleblower.
According to Inner City Press, the SEC continued slamming Terraform Labs, and its founder, Do Kwon, committed fraud with the Terra (LUNA) project and faked its token transactions. The enforcement agency cited sealed evidence, which it claims was provided by an anonymous whistleblower.
On the other hand, the lawyers from Terraform Labs Do Kwon argue that the SEC is flip-flopping on the de-pegging of UST stablecoin, the USD-backed crypto-token issued by Terra.
The hearing came to the Southern District of New York, where Judge Jed Rakoff cleared that none of these filings will remain sealed and confidential after the case goes to trial. “If this case goes to trial, nothing is going to stay confidential,” said the judge.
Judge Jed Rakoff recently granted confidentiality to Jump Crypto’s filings, which allege an involvement in the de-pegging of UST.
While the SEC’s security lawsuit against Terraform Labs and Do Kwon is going on trial in January 2024, the confidentiality of certain filings might be opened by the court. The judge has also denied any summary judgment on the lawsuit that was asked by the SEC before.
