SEC insists on U.S. deposition for detained Terraform Labs co-founder Do Kwon SEC insists on U.S. deposition for detained Terraform Labs co-founder Do Kwon
SEC seeks to depose Do Kwon in U.S. despite Montenegro detention.
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Updated: Sep. 28, 2023 at 9:20 am UTC
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The Securities and Exchange Commission (SEC) is seeking to depose Terraform Labs co-founder Do Kwon in the U.S. by Oct. 13, according to a legal filing reviewed by CryptoSlate. This comes despite Kwon currently being detained in Montenegro pending potential extradition.
Kwon’s legal team argues it is impossible for him to appear for a deposition in the U.S., given his detention abroad. They have proposed the SEC depose Kwon in Montenegro per their prior request. However, the SEC has rejected this and insists on setting a U.S. deposition date before the discovery cutoff despite Kwon’s circumstances.
The filing states the SEC did not disclose its intent to notice a U.S. deposition to the court or Kwon’s counsel. It also alleges the SEC misrepresented Kwon’s refusal to be deposed when he did not oppose their prior deposition request via a letter to Montenegro.
Additionally, Kwon’s lawyers argue the SEC’s alternative request to preclude Kwon from submitting evidence should be denied. They say this violates court rules as the SEC did not get advance permission to seek such relief.
Overall, the filing urges denial of the SEC’s motion on grounds it is currently impossible for Kwon to appear in the U.S. and their other requests are improper or premature per court rules.
The high-profile legal battle between the SEC and Kwon has been closely watched after the spectacular collapse of TerraUSD and Luna last year. However, Kwon’s detention abroad has complicated the U.S. proceedings pending resolution of his extradition case.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.