 The Southern District, the New York District judge, Jed Rakoff, today allowed the SEC to go forward with its case against Terraform Labs and founder, Doquan, Judge Rakoff specifically rejected the distinction made in the Ripple case between public and institutional sales. Now he states that the court declines to draw distinction between these coins based on their manner of sale, such that coins sold directly to institutional investors are considered securities and those sold through secondary market transactions to retail investors or not. Because these institutional investors knew Ripple and they were under the assumption that these were actually an investment contract. When Ripple sold these directly to these hedge funds, they knew it was a security because it was an investment contract. The distinction between this was when XRP was actually on exchanges, nobody knew where it was coming from. Was it coming from Ripple? Was it coming from another investor? There wasn't really an investment contract per se. However, Howie makes no such distinction between purchasers and it made good sense that it did not.