Court rules that Terraform illegally sold unregistered securities LUNA and MIR, violating federal securities laws

According to CoinDesk, Judge Jed Rakoff of the Southern District Court of New York ruled in a summary judgment that Terraform Labs violated federal securities laws by selling its unregistered cryptocurrency securities LUNA and MIR to the public.

At the same time, the judge prevented two other defense witnesses from testifying, one of whom would testify about Terraform's wallet hosting activities, and the other would provide an overview of Terraform's cryptocurrency economic system to the jury.