In a recent episode, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York ruled: Genesis Global must turn over certain documents for to Terraform Labs, and fast!
Let's put it in context: on October 13th, the judge ordered Genesis to meet the demand by the 18th of the same month. Interestingly, the exact content of these documents was not revealed to the public, leaving the market in suspense and opening space for much speculation.
It is interesting to note that, behind this order, there is a broader plot. Terraform Labs, along with its co-founder and CEO Do Kwon, are facing legal troubles with the US Securities and Exchange Commission (SEC). The main accusation? The possible practice of deceptive acts related to its main stablecoin, Terra USD (UST). This had significant repercussions on the market, with some large crypto companies facing serious financial difficulties.
But don't think that Genesis is just watching all this from the sidelines. The company also has its own problems. At the beginning of the year, Genesis sought bankruptcy protection, admitting to substantial debt despite having a solid portfolio of assets. Additionally, the company and renowned cryptocurrency exchange Gemini are facing additional legal challenges. The main question? The alleged offering of unregistered securities.
Understanding the overall picture, it is clear that crypto companies need to be increasingly attentive and prepared to face a stricter regulatory atmosphere. And Genesis' situation, in particular, highlights the fact that not meeting legal demands can further complicate the scenario.
At the time of publication, the price of LUNC was listed at US$0,00005683, down 2% in the last 24 hours.
