The Federal District Court for the Southern District of New York recognized the Terra (LUNA) and TerraUSD (UST) cryptocurrencies issued by Terraform Labs startup as securities. The decision was made by Judge Jed Rakoff during the consideration of the case against Terraform Labs, which was accused of trading unregistered securities by the U.S. Securities and Exchange Commission. By assigning the status of Terra and TerraUSD securities, Rakoff supported the regulator, finding the coin issuer guilty of illegally issuing securities.

A meeting is scheduled for January 29, where the jury will be selected to consider charges of deception by the founder of Terraform Labs, Do Kwon. He is accused of convincing clients of the reliability of the algorithmic stablecoin TerraUSD.

Do not forget that last May UST was renamed TerraClassicUSD (USTC) and lost almost all of its value, falling by more than 99%. The efforts of the crypto community to restore the stablecoin rate to the "legitimate" $1 have been unsuccessful, and the coin is currently trading at just $0.032.

As for Do Kwon, he was arrested in March in Montenegro, and has remained in custody ever since. The United States and South Korea are fighting for his extradition. In his homeland, Kwon is accused of fraud with cryptocurrencies, which led to losses of investors in the amount of $ 40 billion.