Legal professionals for Terraform Labs co-founder Do Kwon have requested a federal courtroom to reject the US Securities and Alternate Fee’s (SEC’s) request to query him within the U.S. over the collapse of the Terra Cash ecosystem.
In a Sept. 27 filing, Kwon’s authorized crew mentioned that the SEC’s request to query him in the US earlier than Oct. 13 was “not possible” as a result 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 could be inconsistent together with his proper to due course of underneath U.S. regulation.
“An order mandating one thing that’s not possible serves no sensible objective and dangers undermining judicial authority.”
Notably, Kwon’s legal professionals claimed that Kwon didn’t straight oppose a deposition, nonetheless famous that it might have to happen in Montenegro, the place the UST stablecoin creator is currently out on bail.
In keeping with the submitting, the minimize off date for discovery within the SEC’s case against Kwon and Terraform Labs is Oct. 13.
Kwon’s authorized crew added {that a} Montenegrin courtroom “informally” indicated that it might but maintain a listening to on Oct. 13 or Oct. 26, during which it might ask Kwon the SEC’s questions. Nonetheless, the SEC famous that it might deem this course of to be “insufficient” and pursue one other deposition of Kwon after the invention deadline.
Associated: SEC seeks to question Terraform Labs co-founder Daniel Shin in Korea
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 Alternate 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 had been arrested in Montenegro in March 2023 after allegedly utilizing false journey paperwork when attempting to depart the nation. The 2 had their authentic passports confiscated in South Korea in October 2022.
Journal: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
