Do Kwon, the founder of Terra Labs, is embroiled in a battle against the Security and Exchange Commission (SEC). The SEC is making concerted efforts to extradite him to the United States. These moves aim to facilitate discussions concerning the massive losses of his firm’s stablecoins, Terra and Luna. However, legal representatives for Kwon have staunchly resisted, arguing the impossibility of fulfilling such requests.
Legal documents filed in the United States District Court for the Southern District of New York reveal Kwon’s attorneys strongly oppose giving him the chance to testify before American authorities. Since March, Kwon has been held indefinitely in Montenegro. Consequently, his lawyers assert that extraditing him to the United States would be unfeasible.
Do Kwon Legal Team Fights SEC Extradition
Kwon’s right to due process is central to the arguments made by his attorneys. They contend that an order demanding an impossibility undermines judicial authority and serves no practical purpose. The SEC’s insistence on Kwon’s extradition is met with relentless opposition, as his legal team explores every avenue to thwart such requests.
In February 2023, the SEC initiated legal action against Terraform Labs, alleging dissemination of false information to investors regarding the stability of its TerraUSD stablecoin. Both TerraUSD and Terra’s native LUNA coin experienced devastating crashes in 2022, leading to significant investor capital wipe-offs. The looming deadline for discovery in this case, set for October 13, intensifies the regulator’s push to converse with Kwon.
SEC Highlights Suspicious Terraform Crypto Moves
Recent reports from Coingape shed light on covert crypto transactions allegedly conducted by Terraform Labs. These reports suggest the transfer of about 239 BTC from a total of 5292 BTC associated with the Luna Foundation Guard. Furthermore, the SEC has commented on these alleged clandestine activities, stating that Do Kwon and TFL transferred 10,000 BTC to a cold wallet after the Terra-LUNA crisis.
Also Read: Is Terra Co-Founder Do Kwon Coming To US? SEC Files Motion In Court
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: