Do Kwon seeks dismissal of SEC charges as UST stablecoin is a currency, not a security

Counsel for Terraform Labs' Do Hyeong Kwon has sought the dismissal of the Securities and Exchange Commission's charges against him, arguing that the stablecoin TerraUSD ( UST-USD ) named in its complaint doesn't fall under its purview as it is a currency, not a security. They alleged the SEC failed to prove "personal jurisdiction" as the assets mentioned in its complaint were "available to the world and not directed at U.S. persons". Do Kwon's lawyers also argued that Terraform, crypto issuer of collapsed Luna ( LUNA-USD ) and sister token TerraUSD ( UST-USD ), conducted no public offerings requiring SEC registration. Lastly, the lawyers claimed the SEC failed to plead material misrepresentations or omissions, as it does not enough proof to support its claims on KrT stablecoins and UST's repegging. Earlier this year, the SEC charged Terraform and its co-founder Do Kwon for running a multibillion dollar crypto fraud scheme. Do Kwon, who had been on the lam for months, was arrested by Montenegrin police last month for attempting to travel with forged documents. He is also wanted by South Korean authorities. More on Do Kwon Terra's Do Kwon faces Montenegro indictment for forgery Terraform Labs said to be probed by Singapore police Do Kwon arrested in Montenegro after months in hiding