Legal professionals for Terraform Labs co-founder Do Kwon have requested a federal courtroom to reject america Securities and Trade Fee’s (SEC’s) request to query him within the U.S. over the collapse of the Terra Cash ecosystem.
In a Sept. 27 submitting, Kwon’s authorized crew mentioned that the SEC’s request to query him in america earlier than Oct. 13 was “inconceivable” because of being detained in Montenegro with “no scheduled launch or extradition date.”
Moreover, Kwon’s crew mentioned that offering a written testimony to reply the SEC’s questions can be inconsistent together with his proper to due course of below U.S. regulation.
“An order mandating one thing that’s inconceivable serves no sensible objective and dangers undermining judicial authority.”
Notably, Kwon’s attorneys claimed that Kwon didn’t instantly oppose a deposition, nonetheless famous that it will must happen in Montenegro, the place the UST stablecoin creator is at present out on bail.
In accordance with the submitting, the reduce off date for discovery within the SEC’s case in opposition to Kwon and Terraform Labs is Oct. 13.
Kwon’s authorized crew added {that a} Montenegrin courtroom “informally” indicated that it could but maintain a listening to on Oct. 13 or Oct. 26, wherein it will ask Kwon the SEC’s questions. Nonetheless, the SEC famous that it could deem this course of to be “insufficient” and pursue one other deposition of Kwon after the invention closing date.
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The SEC sued Terraform Labs and Kwon on Feb. 16 for allegedly “orchestrating a multi-billion greenback crypto asset securities fraud.”
At the moment we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and different crypto asset securities.
— U.S. Securities and Trade Fee (@SECGov) February 16, 2023
Within the lawsuit, the SEC mentioned that Terraform and Kwon “touted and marketed” its Anchor Protocol, which at one level was marketed to pay out 20% curiosity on USTC deposits. It additionally alleged Terraform and Kwon misled buyers concerning the stability of Terra’s stablecoin.
Kwon and Terraform Labs’ chief monetary officer Han Chang-Joon have been arrested in Montenegro in March 2023 after allegedly utilizing false journey paperwork when making an attempt to go away the nation. The 2 had their authentic passports confiscated in South Korea in October 2022.
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