SEC v. Crypto – Bloomberg

In some sense, the Terra result was obvious once the judge allowed the case to go forward: If you think that Terra’s tokens were securities, then of course you are going to find that Terra did securities fraud. This is in part because there is a lot of evidence that Kwon and Terraform were lying to investors about important facts of the Terra ecosystem, but there is also the more straightforward fact that Terra crashed and incinerated a lot of investor money. If (1) you call a thing a “stablecoin,” (2) its value drops to $0.026 and (3) it is a security, then (4) you’re going to get sued for securities fraud and (5) you are going to lose.

Source: SEC v. Crypto – Bloomberg