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Former Terraform Labs CEO Do Kwon’s Legal Team Opposes SEC Deposition Request

The legal team representing Do Kwon, the former CEO of Terraform Labs, has firmly declared that the United States Securities and Exchange Commission’s (SEC) demands for his deposition are impractical and unfeasible.

In a recent court filing, Kwon’s legal representatives vehemently opposed the SEC’s request to prevent them from submitting requests on Kwon’s behalf, stating, “The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition.”

The filing further asserts that Kwon has never opposed the SEC’s opportunity to depose him. Kwon’s lawyers claim that he has already provided extensive testimony to the SEC, amounting to “approximately 21 hours” throughout a two-year investigation.

In compliance with an SEC subpoena, Kwon allegedly dedicated two full five-hour days to testify under oath. Additionally, he claimed to have spent five hours testifying before Singapore authorities and participated in six hours of interviews with the SEC.

However, Kwon’s current incarceration in a Montenegrin prison is a significant hurdle in this legal battle. He was convicted on June 19 for possessing counterfeit passports from Belgium and Costa Rica, resulting in a four-month prison sentence.

The circumstances surrounding Kwon’s activities in Montenegro before his arrest remain unclear. Nevertheless, the SEC is pursuing him in connection with the collapse of the Terra ecosystem in May 2022.

Kwon’s involvement in creating two digital tokens, Terra LUNA and TerraUSD, which experienced a catastrophic collapse resulting in an approximate market wipeout of $40 billion, has drawn significant regulatory attention. Following the collapse, LUNA was rebranded to LUNA Classic, with its current price sitting at $0.000065 at the time of publication.

Consequently, both the SEC and South Korean authorities have filed fraud charges against Kwon in connection with the collapse, leading to ongoing efforts by the SEC to extradite him to the United States.

On August 18, reports emerged that a US District Judge granted the SEC permission to enlist the assistance of the South Korean government in its ongoing investigation into Kwon’s activities and the Terra ecosystem’s downfall, adding another layer of complexity to this legal saga.

 

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