Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.
Four crypto tokens sold by Do Kwon and his co-founded company, Terraform Labs, has been qualified as unregistered securities.
The tokens in question are TerraUSD (UST), LUNA, wLUNA, and Mirror Protocol (MIR), according to a recent summary judgment ruling by Judge Jed Rakoff of the U.S. Court for the Southern District of New York.
However, the ruling favored the defendants on one charge, dismissing the notion that Terra’s Mirror Protocol “mAssets” constituted security-based swaps.
One significant revelation from the ruling pertains to the Chai payments platform, which Kwon frequently highlighted as a real-world use case of the Terra blockchain for promotional purposes.
Judge Rakoff presented evidence brought forth by the SEC, indicating that the Chai platform did not operate on the Terra blockchain as claimed.
Instead, payments were purportedly settled using traditional methods and then “mirrored” on the Terra blockchain through a server under Kwon’s control.
The evidence includes an email from a Chai employee in May 2020, stating that Chai would process transactions outside the blockchain and only write a record on the Terra blockchain in parallel.
Additionally, a whistleblower, who served as Chai’s...
On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that ...