In a major development on July 31, U.S. Judge Jed Rakeoff of the Southern District of New York has rejected Terraform’s motion to dismiss the fraud charges levied against the company by the United States Securities and Exchange Commission. While ruling over this case, Judge Rakeoff has also expressed his disagreement with fellow Judge Analisa Torres on the recent decision in the Ripple v. SEC case.
U.S. Judge Challenges Ripple Ruling, Claims Howey Test Fails To Differentiate Investors
On July 18, lawyers representing Terraform Labs and its CEO Do Kwon in their ongoing lawsuit with the SEC filed a motion to dismiss, basing their arguments on Ripple’s partial victory against the financial regulator.
Earlier in July, Judge Torres had delivered an important ruling, stating that retail sales of the XRP token did not violate U.S. securities law. Using the Howey Test, Torres deemed that only the institutional sales of XRP could be…
