Do Kwon's Lawyers Seek Dismissal of SEC Demand for U.S. Interrogation Amid Terra Money Collapse
Summary:
Do Kwon's attorneys have asked a U.S. federal court to dismiss the SEC's request to interrogate him in the U.S. over the collapse of the Terra Money network, citing his detention in Montenegro and due process rights. Kwon doesn't directly oppose a deposition but insists it should occur in Montenegro, where he's out on bail. Meanwhile, the SEC may consider this procedure inadequate and pursue a separate deposition after the discovery period.
Attorneys representing Do Kwon, co-founder of Terraform Labs, have petitioned a U.S. federal court to disregard the request by the U.S. Securities and Exchange Commission (SEC) to interrogate him stateside over the implosion of the Terra Money network. The legal cogent put forward in a Sept. 27 document that the SEC's demand to cross-examine him on American soil prior to Oct. 13 couldn't be fulfilled given he is currently held in Montenegro and lacks a predefined release or extradition timeline. Kwon's legal counsel further contended that supplying written responses to the SEC's inquiries would contradict his entitlement to due process as stated in American legislation. They argued that a directive that is unfeasible in practice obscures the efficacy of judicial power. The claim is that it is unachievable to acquiesce to the SEC's request for Kwon's extradition. Referencing CourtListener, Kwon's legal advisors submitted that while Kwon does not directly challenge a deposition, he insists that such proceedings should transpire in Montenegro, where he, the creator of the UST stablecoin, is currently out on bail. Per the submission, the closure date for discovery in the SEC's case against Kwon and Terraform Labs is Oct. 13. As a supplementary argument, Kwon's attorneys noted that a court in Montenegro gave informal indications that it might convene a meeting on Oct. 13 or Oct. 26, during which it will solicit answers from Kwon to the SEC's questions. Nonetheless, it is perceived that the SEC may regard this procedure as inadequate, thereby pursuing a separate deposition of Kwon after the end of the discovery period. Contextually, in February, the SEC blamed Terraform Labs and Kwon for supposedly masterminding cryptocurrency securities fraud worth several billion dollars. The Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon were culpable for the fraudulent operation involving a stablecoin governed by algorithms and other crypto-asset securities, alleged the SEC. The lawsuit from the SEC accuses Terraform and Kwon of enthusiastic promotion and incorrect portrayal of its Anchor Protocol, dishonoring the trust of investors regarding the stability of Terra's stablecoin. Kwon and Terraform's CFO Han Chang-Joon were arrested in Montenegro in March 2023 when found using counterfeit travel credentials while attempting to exit the nation. Their original travel documents got seized in South Korea in October 2022.
Published At
9/28/2023 12:54:04 AM
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