Crypto entrepreneur Do Kwon’s lawyers say a US regulator’s lawsuit accusing him and Terraform Labs Pte of securities fraud is unfounded, in part, because the stable coin at issue is a currency, not a security.
The agency said the company illegally offered unregistered securities and carried out a scheme that wiped out at least $40 billion worth of market value.
Kwon’s lawyers say the lawsuit is an improper attempt by the SEC to regulate cryptocurrencies using antiquated laws, even though Congress, the executive branch and the agency itself can’t agree on what qualifies as a “security.”
“The SEC’s improper assertion of power here by trying to shoehorn all cryptocurrencies into its definition of a ‘security’ fails,” the lawyers said in their filing.
Source: Do Kwon Says SEC Is Out of Bounds in Pursuing Crypto Fraud Suit – Bloomberg