United States howey testcryptocurrencyenforcement

SEC v Terraform Labs Pte Ltd

SEC v. Terraform Labs Pte Ltd., No. 23-cv-01346 (JSR) (S.D.N.Y. 2024)

JurisdictionUnited States

CourtUnited States District Court for the Southern District of New York

Year2024

StatusPersuasive authority

Key Principle

Crypto assets marketed and sold as investments may be 'securities' under the Howey investment-contract test, and a unanimous jury found Terraform Labs and its founder Do Kwon liable for orchestrating a years-long securities fraud relating to the TerraUSD (UST) stablecoin and related tokens, resulting in a settlement exceeding $4.5 billion.

Area of Law

securities

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Slack Technologies, LLC v. Pirani 598 U.S. 759 (2023)

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Lorenzo v Securities and Exchange Commission 587 U.S. 71 (2019)

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