In a significant legal development, Judge Jed Rakoff of the U.S. District Court ruled that Terraform Labs’ Terra (LUNA) and Mirror Protocol (MIR) tokens are securities. This ruling aligns with the SEC’s stance that Terraform Labs illegally sold these cryptocurrencies without proper registration. The decision, emerging from a summary judgment, could influence future legal proceedings regarding Terraform’s compliance with securities laws.
Despite this ruling, Terraform Labs disputes the classification of these tokens as securities, insisting that the SEC’s allegations of fraud are baseless.
