SEC Pushes For Do Kwon’s Testimony In Terra Lawsuit But Restrictions Apply

Key Points:

• The SEC seeks permission for defendant Do Kwon’s testimony in the Terra lawsuit but urges the court to prohibit the use of his statements in summary judgment.
• Do Kwon remains in a Montenegro prison on passport fraud charges, and recent court proceedings have not been entirely favorable for the SEC, with a federal judge criticizing the agency’s actions as hypocritical and arbitrary.

The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the ongoing Terra lawsuit, filing a motion that calls for the court to allow the testimony of defendant Do Kwon.

In court documents submitted on September 22, the SEC also offered alternatives in case obtaining Do Kwon’s testimony proves challenging. However, the SEC’s motion also includes a noteworthy condition: it urges the court to prohibit the use of any of Do Kwon’s statements in summary judgment.

This development comes against the backdrop of Do Kwon’s current detention in a Montenegro prison on passport fraud charges, with extradition proceedings yet to commence. As the legal proceedings unfold, the SEC aims to secure valuable testimony from the defendant.

Both defendants in the Terra lawsuit, Terraform Labs and Do Kwon, are scheduled to submit their responses on September 26. To bolster its motion, the SEC has provided additional details in a memorandum supporting its position.

The SEC’s efforts in this case also include a previous motion to seek international legal assistance related to Daniel Shin, co-founder of Chai Corporation and Terraform Labs. However, the judge denied the defendant’s request to subpoena a third party for documents.

It’s important to note that the court proceedings in the Terra lawsuit have faced various twists and turns. In a recent development, Judge Jed Rakoff’s stance differed from Judge Torres’ ruling in the Ripple v. SEC lawsuit. These varying perspectives highlight the complex and evolving nature of regulatory actions in the crypto space.

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