A federal judge in New York has allowed the Securities and Exchange Commission (SEC) to pursue its fraud lawsuit against Terraform Labs and its founder, Do Kwon. The judge rejected a previous ruling stating that sales of XRP on secondary markets did not constitute an investment contract. Kwon’s defense team had cited this ruling in an attempt to get the SEC’s lawsuit dismissed. The judge refused to acknowledge a distinction between coins sold directly to institutional investors and those sold through secondary market transactions to retail investors. This decision goes against the precedent set by Ripple’s legal battle with the SEC. The article provides breaking news updates on Ethereum and Bitcoin, along with decentralized finance (DeFi).
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