Do Kwon says SEC’s extradition request is impossible

Attorneys for Terraform Labs co-founder Do Kwon have requested a federal court docket to reject america Securities and Trade Fee’s (SEC’s) request to query him within the U.S. over the collapse of the Terra Cash ecosystem.

In a Sept. 27 filing, Kwon’s authorized staff mentioned that the SEC’s request to query him in america earlier than Oct. 13 was “not possible” as a result of being detained in Montenegro with “no scheduled launch or extradition date.”

Moreover, Kwon’s staff mentioned that offering a written testimony to reply the SEC’s questions could be inconsistent along with his proper to due course of below U.S. regulation.

“An order mandating one thing that’s not possible serves no sensible function and dangers undermining judicial authority.”

Notably, Kwon’s attorneys claimed that Kwon didn’t straight oppose a deposition, nonetheless famous that it will must happen in Montenegro, the place the UST stablecoin creator is currently out on bail.

In accordance with the submitting, the minimize off date for discovery within the SEC’s case against Kwon and Terraform Labs is Oct. 13.

Kwon’s authorized staff added {that a} Montenegrin court docket “informally” indicated that it might but maintain a listening to on Oct. 13 or Oct. 26, during which it will ask Kwon the SEC’s questions. Nevertheless, the SEC famous that it might deem this course of to be “insufficient” and pursue one other deposition of Kwon after the invention closing date.

Associated: SEC seeks to question Terraform Labs co-founder Daniel Shin in Korea

The SEC sued Terraform Labs and Kwon on Feb. 16 for allegedly “orchestrating a multi-billion greenback crypto asset securities fraud.”

As we speak we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and different crypto asset securities.

— U.S. Securities and Trade Fee (@SECGov) February 16, 2023

Within the lawsuit, the SEC mentioned that Terraform and Kwon “touted and marketed” its Anchor Protocol, which at one level was marketed to pay out 20% curiosity on USTC deposits. It additionally alleged Terraform and Kwon misled traders in regards to the stability of Terra’s stablecoin.

Kwon and Terraform Labs’ chief monetary officer Han Chang-Joon have been arrested in Montenegro in March 2023 after allegedly utilizing false journey paperwork when making an attempt to depart the nation. The 2 had their authentic passports confiscated in South Korea in October 2022.

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