Do Kwon states SEC’s extradition demand is difficult
Legal Representatives for Terraform Labs co-founder Do Kwon have actually asked for a federal court to decline the United States Securities and Exchange Commission’s (SEC’s) demand to question him in the U.S. over the collapse of the Terra Cash community.
In a Sept. 27 filing, Kwon’s legal group stated that the SEC’s demand to question him in the United States prior to Oct. 13 was “difficult” due to being apprehended in Montenegro with “no scheduled release or extradition date.”
In addition, Kwon’s group stated that supplying a composed testament to address the SEC’s concerns would be irregular with his right to due procedure under U.S. law.
” An order mandating something that is difficult serves no useful function and dangers weakening judicial authority.”
Especially, Kwon’s legal representatives declared that Kwon did not straight oppose a deposition, nevertheless kept in mind that it would require to occur in Montenegro, where the UST stablecoin developer is presently out on bail.
According to the filing, the cut off date for discovery in the SEC’s case versus Kwon and Terraform Labs is Oct. 13.
Kwon’s legal group included that a Montenegrin court “informally” showed that it might yet hold a hearing on Oct. 13 or Oct. 26, in which it would ask Kwon the SEC’s concerns. Nevertheless, the SEC kept in mind that it might consider this procedure to be “insufficient” and pursue another deposition of Kwon after the discovery cut-off date.
Related: SEC looks for to question Terraform Labs co-founder Daniel Shin in Korea
The SEC took legal action against Terraform Labs and Kwon on Feb. 16 for supposedly “managing a multi-billion dollar crypto property securities scams.”
Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with managing a multi-billion-dollar crypto property securities scams including an algorithmic stablecoin and other crypto property securities.
— U.S. Securities and Exchange Commission (@SECGov) February 16, 2023
In the claim, the SEC stated that Terraform and Kwon “promoted and marketed” its Anchor Procedure, which at one point was marketed to pay 20% interest on USTC deposits. It likewise declared Terraform and Kwon misinformed financiers about the stability of Terra’s stablecoin.
Kwon and Terraform Labs’ primary monetary officer Han Chang-Joon were detained in Montenegro in March 2023 after supposedly utilizing incorrect travel files when attempting to leave the nation. The 2 had their initial passports taken in South Korea in October 2022.
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