The SEC and Terraform Labs Agree on Confidentiality Terms in Trial
The legal team representing Terraform Labs and Do Kwon has reached an agreement with the SEC to maintain the confidentiality of certain documents during their trial. This agreement is in response to the SEC’s charges against LUNA founder Do Kwon, accusing them of involvement in a fraudulent scheme with cryptocurrency assets worth billions of dollars. The collapse of Terra’s stablecoin UST and LUNA in 2022 had a significant impact on the recent crypto winter and contributed to the FTX collapse.
Protective Order Ratified by Judge Rakoff
Judge Jed Rakoff of the Southern District of New York has ratified a protective order that prohibits both parties from publicly disclosing confidential materials. Discovery documents labeled as confidential will remain sealed until the trial begins. While Judge Rakoff did not provide specific reasons for the confidentiality, he expressed doubt about unsealing these documents unless there is a compelling reason to do so.
Mutual Agreement Reached
On December 18, the legal representatives of both the SEC and Terraform Labs, including Do Kwon, agreed upon this protective order. Do Kwon is currently detained in Montenegro, awaiting potential extradition to the United States or South Korea.
Hot Take: Confidentiality Maintained in Terraform Labs’ Trial Against SEC
The SEC and Terraform Labs have come to an agreement regarding the confidentiality of certain documents in their ongoing trial. This agreement, ratified by Judge Rakoff, ensures that both parties are prohibited from publicly disclosing confidential materials. The sealed discovery documents will remain confidential until the trial begins, with a low probability of being unsealed. The decision to maintain confidentiality was made for “good cause,” although specific reasons were not provided. This mutual agreement between the legal teams of both parties demonstrates their commitment to a fair and impartial trial. As the trial approaches, it will be interesting to see how this confidentiality order impacts the proceedings and the ultimate outcome of the case.
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