Another Problem for XRP? U.S. Judge Rules Terraform Tokens (LUNA, LUNC) are Securities
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Just now, United States judge Jed Rakoff ruled that all tokens minted on the Terraform blockchain are securities in accordance with Howey's test. This ruling comes just a few days after another U.S. judge ruled that Ripple's XRP isn't a security.
Terraform Lab experienced a major setback in May 2022 as the native coin of the Terra blockchain, Luna," lost almost all of its value in less than 48 hours. This particular incident prompted the involvement of law enforcement agencies in both the US and South Korea.
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Following XRP's partial victory in the judiciary, the Terraform Legal Team has moved a motion to strike out the SEC's lawsuit against them; however, this move has backfired and might also affect XRP.
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