- The SEC charged TerraForm Labs with fraud back in February 2022.
- Founder Do Kwon moves to dismiss SEC’s depository request.
- South Korean authorities are seeking to repatriate Do Kwon.
The infamous TerraForm Labs founder Do Kwon is pushing back on the U.S. Securities and Exchange Commission’s (SEC) request for an interview in the United States. TerraForm Labs and Do Kwon’s lawyer team officially penned the memorandum opposing the plaintiff’s motion.
Kwon Unmoved: SEC’s Depository Request Not Met
The reason for this move by the defense team is simple: Do Kwon won’t be physically able to attend the deposition. Currently, the notorious crypto tycoon is serving time for document forgery in Montenegro. In March 2023, Do Kwon and fellow TerraForm Labs CFO were dramatically captured in Podgorica on the way to board a private jet to Dubai.
In a court filing on September 27th, 2023, Kwon’s lawyers argued that the arrival of their client would be impossible, as there’s “no scheduled release or extradition date.” The SEC had been trying to get ahold of the crypto fugitive since last year, even though the actual case saw the light of day in February.
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The SEC launched a probe into Do Kwon and TerraForm Labs in February 2023. The criminal case alleges that Kwon and other co-founders manipulated the prices of Terra Luna and the UST stablecoin and deceived customers to defraud them. According to the SEC’s complaint, the depegged stablecoin “was simply a fraud, the price of which was controlled by the defendants, not any code.”
As the story unfolds, it’s unclear if Do Kwon’s desire to stay in Europe for longer will come true as he is wanted by United States law enforcement and Singapore police. On top of that, the special task force assembled on Kwon’s native soil, South Korea, is actively working on the disgraced founder’s repatriation.
On the Flipside
- Terra Luna’s relaunched blockchain Terra 2.0 (LUNA) gained 35.7% amid the news.
- The original Terra Luna Classic (LUNC) also fetched 12%, while $USTC inked 7.7%.
Why This Matters
Crypto investors affected by the Terra Luna fiasco in 2022 are seeking closure in a precedent-setting lawsuit.
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