US SEC Files Motion in Terra Lawsuit
In the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs and co-founder Do Kwon, the SEC has filed a motion seeking deposition from Kwon. This comes as Kwon remains in prison in Montenegro for passport fraud allegations, with extradition proceedings yet to commence.
SEC Urges Deposition of Do Kwon
The SEC has requested the court to grant permission for the deposition of defendant Do Kwon, according to a court filing on September 22. In addition, the SEC proposes an alternative solution if conducting Kwon’s deposition proves difficult. The SEC also urges the court to prevent the use of any declarations from Kwon in the summary judgment.
The response from Terraform Labs and Do Kwon is expected by September 26, with further details submitted by the SEC in support of their motion.
SEC’s Earlier Motion Approved
Prior to this, Judge Jed Rakoff approved the SEC’s earlier motion for international judicial assistance regarding Chai Corporation and co-founder Daniel Shin. However, the judge denied the defendants’ request to subpoena a third party for documents.
It is worth noting that Judge Rakoff did not agree with Judge Torres’ ruling in the Ripple vs SEC lawsuit. The recent developments in court proceedings have been unfavorable for the SEC, as federal judges criticize their approach as hypocritical and arbitrary.
Will Do Kwon Be Extradited to the US?
Do Kwon has been sentenced to four months imprisonment by a Montenegro judge for passport forgery. However, he is expected to be extradited to South Korea rather than the United States according to current conditions.
The SEC’s request to preclude Kwon’s declaration in the summary judgment has raised questions within the crypto community. The response from the defendants will provide more clarity on the importance of Kwon’s declaration.
Hot Take: SEC Faces Challenges in Terra Lawsuit
The SEC’s lawsuit against Terraform Labs and Do Kwon continues to face hurdles. With Do Kwon’s imprisonment and potential extradition to South Korea, the SEC seeks his deposition. However, recent court proceedings have not been in favor of the SEC, as judges criticize their approach. The outcome of this lawsuit will have significant implications for both parties involved and may impact future regulatory actions in the crypto industry.
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