The U.S. Securities and Exchange Commission (SEC) has initiated a civil fraud trial against Terraform Labs and its founder, alleging the construction of a 'House of Cards'. Concurrently, the SEC is conducting a trial against a former Bay Area biotech executive, testing an insider-trading theory involving 'shadow trading'. This theory is being examined through the case of a former Medivation executive accused of making $120,000 from trading stock in a competitor after learning about his company's impending acquisition by Pfizer. The SEC's lawyer likened the executive's windfall to 'betting on a game when you know who’s going to win,' suggesting a clear advantage was exploited.