Terraform Labs initiated a motion for summary judgment, supported by “the SEC’s alleged false statements in the DEBT Box case”

Terraform Labs faced a securities lawsuit from the U.S. SEC and requested a summary judgment on December 4, 2023 to settle the case. According to the presiding judge’s statement, the defendant cited the handling of another company, DEBT Box, in the SEC lawsuit to point out that the regulator misinterpreted the facts in the case. In a separate case involving a company called Digital Licensing Inc. (doing business as DEBT Box), the judge criticized the SEC's actions. SEC lawyers could face sanctions for making “misleading” arguments alleging that crypto project Debt Box moved its assets and investor funds overseas, according to an order signed by U.S. District Court Judge Robert Shelby in Utah. This led to a court freezing the project’s bank accounts. The latest filing claims that DEBT Box had an impact on the U.S. SEC’s “general use of evidence excerpts” in the Terra case. It also weighs on part of the SEC's amended complaint, which alleges that Terraform Labs and Kwon retained control of the funds or diverted them. (CryptoSlate)