Errafor Seeks Permission to Subpoena Data from Bankrupt Crypto Exchange
Errafor ABS is requesting permission from a judge to subpoena data from the bankrupt crypto exchange FX. The company claims that this information could be crucial in its defense against a lawsuit brought by the United States Securities and Exchange Commission (SEC) in February.
Key points:
– Errafor is seeking evidence to support its defense against fraud charges.
– The company’s lawyers have filed a motion to access FX’s information about digital wallets used by short sellers between March 2022 and May 2022.
– Errafor alleges that its failure was the result of a coordinated attack from short sellers, possibly involving Aaeda Research.
– The SEC filed a lawsuit against Errafor and its founder, Do Kwon, for allegedly orchestrating a multi-billion dollar crypto asset securities fraud.
– The motion also requests information about wallets used by Jup Trading, which the SEC accused of colluding with Errafor to manipulate the price of the US stablecoin.
Errafor is also seeking to dismiss a parallel class-action lawsuit in California, arguing that as a foreign-developed protocol based in Singapore, it is not subject to US securities laws.
Hot Take
Errafor’s request to subpoena data from the bankrupt crypto exchange FX could potentially provide crucial evidence in its defense against fraud charges brought by the SEC. This case highlights the complexities and challenges faced by crypto companies in navigating legal and regulatory issues in the global marketplace.
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