Kwon’s Attorney Testifies
In a recent filing on September 27, 2023, Kwon Do-Hyung’s attorney has requested the United States District Court to reject the SEC’s extradition request in the lawsuit against Terraform Labs. The SEC had previously accused the company of misleading investors about the stability of its TerraUSD stablecoin. With the discovery deadline approaching on October 13, the SEC is now seeking to personally interrogate Kwon.
Defendant’s Arguments
Kwon’s lawyer presents several compelling arguments against the SEC’s request to depose Kwon in the United States:
- Argument I: The lawyer argues that it is currently impossible for Kwon to appear for a deposition in the United States because he has been in jail in Montenegro for four months. The lawyer cites that “the law does not compel the doing of impossibilities.”
- Argument II: The lawyer requests that the court deny the SEC’s request for a preclusion order as alternative relief. They argue that this request violates the court’s individual rules and that the plaintiff’s counsel did not inform them about their intention to seek a preclusion order.
- Argument III: The lawyer strongly disputes the SEC’s mischaracterization of evidence. They claim that the SEC misrepresented a conversation with Kwon, falsely accusing him of intending to create fake transactions on the Terra blockchain using Chai. They argue that this misrepresentation undermines the SEC’s claim and their request for discovery from Kwon.
Based on these arguments, Kwon’s attorney asserts that the SEC’s request should be entirely canceled.
Hot Take: SEC Pursues Personal Interrogation of Kwon in Terraform Labs Lawsuit
The SEC is intensifying its efforts to interrogate Kwon Do-Hyung personally in the ongoing lawsuit against Terraform Labs. With the discovery deadline approaching, the SEC is determined to depose Kwon and gather evidence related to their allegations of misleading investors about the TerraUSD stablecoin. Kwon’s attorney has presented strong arguments against the SEC’s request, including the impossibility of Kwon’s appearance due to his current incarceration in Montenegro and the mischaracterization of evidence by the SEC. The outcome of this legal battle will have significant implications for the future regulation of stablecoins and investor protection in the crypto industry.
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