{"id":553012,"date":"2023-02-17T09:11:23","date_gmt":"2023-02-17T06:11:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/terra-lawsuit-a-roadmap-to-attack-other-stablecoins-delphi-labs\/"},"modified":"2023-02-17T09:11:23","modified_gmt":"2023-02-17T06:11:23","slug":"terra-lawsuit-a-roadmap-to-attack-other-stablecoins-delphi-labs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/terra-lawsuit-a-roadmap-to-attack-other-stablecoins-delphi-labs\/","title":{"rendered":"# Terra lawsuit a \u2018roadmap\u2019 to attack other stablecoins: Delphi Labs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35a66546df5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35a66546df5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-lawsuit-a-roadmap-to-attack-other-stablecoins-delphi-labs\/#%E2%80%9D_Terra_lawsuit_a_%E2%80%98roadmap_to_attack_other_stablecoins_Delphi_Labs_%E2%80%9C\" >&#8221; Terra lawsuit a \u2018roadmap\u2019 to attack other stablecoins: Delphi Labs  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Terra_lawsuit_a_%E2%80%98roadmap_to_attack_other_stablecoins_Delphi_Labs_%E2%80%9C\"><\/span>&#8221; Terra lawsuit a \u2018roadmap\u2019 to attack other stablecoins: Delphi Labs  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The United States Securities and Exchange Commission\u2019s (SEC&#8217;s) lawsuit against Terraform Labs and its co-founder Do Kwon could be seen as an SEC \u201croadmap\u201d to taking down other stablecoins, according to a lawyer.<\/p>\n<p>Gabriel Shapiro, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel at investment firm Delphi Labs, explained to his 33,800 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers on Feb. 16 that the SEC\u2019s arguments in its complaint against Kwon and Terraform were \u201cmore thorough than usual.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">whew lad, lots to digest in the SEC lawsuit vs Do Kwon and Terraform Labs <\/p>\n<p>right off the bat, a very interesting fact is that the SEC is being more thorough than usual&#8211;specifically running through the Howey test for various assets (UST, LUNA, and wLUNA) and also alleging that\u2026 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/1JsBQijMnw\">https:\/\/t.co\/1JsBQijMnw<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/qHuL6mKpeo\">pic.twitter.com\/qHuL6mKpeo<\/a><\/p>\n<p>\u2014 _gabrielShapir0 (@lex_node) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/lex_node\/status\/1626343983625502722?ref_src=twsrc%5Etfw\">February 16, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Shapiro\u2019s analysis follows the SEC\u2019s Feb. 16 lawsuit against Kwon and Terraform alleging they \u201corchestrat[ed] a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.\u201d <\/p>\n<p>Shapiro suggested the case could serve as a \u201croadmap\u201d for how the regulator may sue other stablecoin issuers in the future. He acknowledged the SEC made the case that Terra\u2019s algorithmic stablecoin, TerraClassicUSD (USTC), constitutes a security:<\/p>\n<blockquote><p>\u201c[The SEC] will allege that integration, promotion, marketing, commercial deals etc building the stablecoin ecosystems are \u2018efforts of others\u2019 that are \u2018reasonably expected\u2019 and can lead to profits in connection with the stables.\u201d<\/p><\/blockquote>\n<p>He pointed out the SEC <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied the four prongs of the Howey Test to argue that USTC, Terra Luna Classic (LUNC) \u2014 renamed from Terra (LUNA) \u2014 and Wrapped LUNA (wLUNA) all constituted securities under U.S. securities laws.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/d67e88dc-6044-4ffc-b414-4eb0f7b2aec2.jpg\"><figcaption style=\"text-align: center;\"><em>Delphi Labs General Counsel Gabriel Shapiro\u2019s take on the SEC\u2019s lawsuit against Terraform Labs and its CEO Do Kwon. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/lex_node\/status\/1626345641491275777?s=20\"><em>Twitter.<\/em><\/a><\/figcaption><\/figure>\n<p>The SEC also argued that Terraform Labs breached U.S. securities laws by launching the Mirror Protocol, which allowed its users to create what Terraform called an \u201cmAsset,\u201d a crypto version of an asset that \u201cmirrors\u201d the price behavior of other assets such as stocks.<\/p>\n<p>The regulator claimed Terraform Labs committed this securities-based swap through the MIR token \u2014 which Shapiro believes to be a \u201cfirst\u201d of all the cryptocurrency-related lawsuits filed by the SEC. <\/p>\n<p>Shapiro noted the SEC\u2019s claim that wLUNA constituted a \u201creceipt\u201d for a security was another \u201cfirst.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/3198b5ac-18ff-4da4-a371-f3448c9ba5ea.jpg\"><figcaption style=\"text-align: center;\"><em>Delphi Labs General Counsel Gabriel Shapiro\u2019s analysis on the SEC\u2019s lawsuit filing against Terraform Labs and its CEO Do Kwon. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/lex_node\/status\/1626345641491275777?s=20\"><em>Twitter.<\/em><\/a><\/figcaption><\/figure>\n<p>Ryan Sean Adams, the host of the crypto-oriented podcast Bankless, made a similar argument to his 221,300 Twitter followers on Feb. 16, noting that a legal victory against Terraform Labs would make it easier to go after other stablecoin issuers.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Gensler&#8217;s next strategy is to go after Do Kwon and UST because he knows no one will defend them and if he wins he&#8217;ll establish broad precedent for more control over crypto.<\/p>\n<p>It&#8217;s evil genius. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FDLoeVcTLb\">https:\/\/t.co\/FDLoeVcTLb<\/a><\/p>\n<p>\u2014 RYAN S\u039eAN ADAMS &#8211; rsa.eth  (@RyanSAdams) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RyanSAdams\/status\/1626355874447982593?ref_src=twsrc%5Etfw\">February 16, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Terra-linked tokens\u00a0infamously crashed in May, 2022, which was in part triggered when USTC lost its peg to the U.S. dollar. As LUNC was closely linked to USTC, its price fell by virtually 100% and triggered a wider downturn in the crypto markets, wiping out approximately $40 billion from the crypto markets.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Why the SEC wants to ban crypto staking and stablecoins under scrutiny \u2014 Watch The Market Report live<\/em><\/strong><\/p>\n<p>Kwon maintains that he is not \u201con the run,\u201d and is believed to be residing in Serbia according to South Korean officials \u2014 who issued a warrant for his arrest.<\/p>\n<p>Earlier in February, two South Korean prosecutors flew to the Balkan state to find Kwon, however, the search attempt was unsuccessful.<\/p>\n<p>Cointelegraph contacted Terraform Labs for comment on the lawsuit but no immediate response was received.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/terra-lawsuit-a-roadmap-to-attack-other-stablecoins-delphi-labs\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Terra lawsuit a \u2018roadmap\u2019 to attack other stablecoins: Delphi Labs &#8220; The United States Securities and Exchange Commission\u2019s (SEC&#8217;s) lawsuit against Terraform Labs and its co-founder Do Kwon could be seen as an SEC \u201croadmap\u201d to taking down other stablecoins, according to a lawyer. Gabriel Shapiro, general counsel at investment firm Delphi Labs, explained&#8230;<\/p>\n","protected":false},"author":1,"featured_media":553013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c6a10537-2769-4e73-8644-a798fb4f3fde.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74894,131670,74898,75493,122378,75269,117,71433,71006,70934,72287],"class_list":["post-553012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-blockchain","tag-lunc","tag-sec","tag-stablecoin","tag-terra","tag-us-government","tag-business","tag-court","tag-fraud","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=553012"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/553013"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=553012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=553012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=553012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}