1. QiAi QuestsHome
  2. Daily Digest

Revocation of Charges by Terra Co-founder, Do Kwon, Against SEC

• Daily Digest • 73 views

According to reports, according to a legal document, Terra co founder Do Kwon has requested the revocation of the charges filed against him by the US Securities and Exchange Commis

Revocation of Charges by Terra Co-founder, Do Kwon, Against SEC

According to reports, according to a legal document, Terra co founder Do Kwon has requested the revocation of the charges filed against him by the US Securities and Exchange Commission (SEC). Do Kwon argues that the SEC’s claims are invalid and refutes the agency’s position that tokens, including MIR, LUNA, and UST, are securities.

Do Kwon seeks to withdraw the SEC’s charges against him

Introduction

Recently, news of Terra co-founder Do Kwon revoking charges filed against him by the US Securities and Exchange Commission (SEC) has been circulating. Kwon has stated that the charges filed against him are invalid, and he vehemently refutes the SEC’s stance that certain tokens, namely MIR, LUNA, and UST, are securities. In this article, we will explore this recent development and analyze Kwon’s arguments for revoking the charges, as well as the impact of this situation on the cryptocurrency industry.

What are the charges against Do Kwon?

The SEC had previously filed charges against Kwon for allegedly violating securities laws by distributing unregistered securities. Kwon, as the co-founder of Terra, had a stake in the mentioned tokens, and the SEC alleged that these tokens were securities that should have been registered with the agency.

Why are the charges invalid?

Kwon argues that the tokens are not securities and therefore should not have to be registered with the SEC. He claims that MIR, LUNA, and UST are all utility tokens that were designed and intended for specific use cases. For instance, MIR is a governance token that grants holders voting rights on the Terra network, while LUNA allows holders to stake on the network and earn rewards. UST, on the other hand, is a stablecoin that is pegged to the value of the US dollar. Kwon states that all these tokens were not intended to generate profits, and any increase in value is due to market demand and is not indicative of their classification as securities.

Impact on the Cryptocurrency Industry

This case is significant as it could potentially set a precedent for the classification of cryptocurrencies in the US. If Kwon’s argument is successful, it could pave the way for more tokens to be classified as utility tokens rather than securities. However, if Kwon loses the case, it could set a precedent for more cryptocurrencies to be classified as securities, which would significantly impact the market.

Conclusion

In conclusion, the recent move by Terra co-founder Do Kwon to revoke charges filed against him by the US Securities and Exchange Commission is a significant development in the cryptocurrency industry. Kwon has argued that the tokens he distributed were utility tokens and not securities, and the outcome of this case could set a precedent for the classification of cryptocurrencies in the US. Regardless of the outcome, it is clear that the SEC’s actions have implications for the industry’s future developments.

FAQs:

1. What are utility tokens?
Utility tokens are cryptocurrencies that are designed to perform a specific function within a blockchain network, like voting rights and access to services.
2. What are securities?
Securities are tradable financial assets, like stocks or bonds, that have value and are intended to generate profits for investors.
3. Will the outcome of this case impact other cryptocurrencies?
Yes, the outcome of this case could set a precedent for how other cryptocurrencies are classified in the US as securities or utility tokens.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/daily/19233.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 04/25/2023 12:45
Next 04/25/2023 13:00

Related recommendations