China News Daily TheBitTimes.com

The key organization backing the Avalanche (AVAX) blockchain ecosystem is announcing plans to repurchase crypto assets sold to the nonprofit behind the Terra (LUNA) protocol in the first half of 2022. The Avalanche Foundation says it has negotiated an agreement to get back all AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022. The organization adds that the plan is now awaiting a judicial green light amid the ongoing bankruptcy proceedings of Terraform Labs (TFL), the embattled startup behind the Terra blockchain. “This action ensures that LFG would not violate the original agreement’s restrictions on the tokens’ use and shields the tokens from the complexity of a bankruptcy trustee liquidation, while returning 1.97 million AVAX to the Foundation’s holdings. This further enhances the Foundation’s ability to support the ongoing growth and development of the Avalanche ecosystem.” On May 19th, 2022, just days after the implosion of the Te...

The U.S. Securities and Exchange Commission (SEC) is demanding a  summary judgment on all claims against Do Kwon and Terraform Labs following alleged breaches.  The agency also seeks to forego a full trial due to a clear set of undisputed facts in its lawsuit. It argues that the pooling of funds in a collective venture, with profits expected mainly from the promoters’ endeavors, meets the criteria of the Howey test, thereby classifying it as a security under federal law.  Terraform and Kwon are accused of deceiving investors about the stability of TerraUSD (UST) stablecoin. In their assessment, the regulator claims that UST’s price stability resulted from undisclosed third-party interventions, making previous statements about the algorithm’s effectiveness misleading. You might also like: South Korea traces more funds allegedly moved by Do Kwon  Do Kwon’s lawyers previously appealed to the court, arguing that the SE...