Judge Refuses to Dismiss SEC Lawsuit Against Terraform Labs Despite Ripple Ruling

U.S. District Judge Jed Rakoff denied Terraform Labs' motion to dismiss the securities fraud lawsuit filed against it by the SEC. The judge rejected defense arguments that the SEC lacked jurisdiction and that Terraform's stablecoin, TerraUSD, did not qualify as an unregistered security. Rakoff's decision is a significant victory for the SEC as it continues to crack down on unlawful token sales in the crypto industry.