Lawyers representing the United States Securities and Exchange Commission and Terraform Labs and co-founder Do Kwon sparred in courtroom over data supplied by a whistleblower in the securities lawsuit.
According to a transcript of courtroom occasions supplied by Inner City Press on Nov. 30, the SEC reiterated its claims that Terra and Kwon “committed fraud” utilizing the LUNA token, citing sealed proof supplied by an unnamed whistleblower. Kwon’s and Terra’s authorized staff reportedly argued the SEC was “flip-flopping” on the problem of TerraUSD (UST) depegging from the U.S. greenback.
“The SEC has misrepresented Do Kwon’s statements,” stated Kwon’s and Terra’s lawyer, in response to the report. “The whistleblower whose name we are not supposed to say, he withheld some of his recordings.”
OK – now at SEC v Terraform Labs & Do Kwon, Inner City Press will dwell tweet, thread beneath https://t.co/zRKCGlc0T4
— Inner City Press (@innercitypress) November 30, 2023
The arguments got here in a listening to of the U.S. District Court for the Southern District of New York, in which Judge Jed Rakoff instructed that not one of the filings made underneath seal would stay confidential ought to the case go to trial. On Nov. 28, the decide approved the confidential treatment of sure supplies filed by Jump Crypto, the agency underneath scrutiny for its alleged involvement in the occasions resulting in the depegging of UST.
Related: Do Kwon could serve prison in both US and South Korea, prosecutor says
Kwon, who was arrested by authorities in Montenegro in March for utilizing falsified journey paperwork, could face extradition to both the U.S. or South Korea following a courtroom approval of the proceedings. In addition to the SEC civil case, the U.S. Attorney’s Office charged Kwon with eight criminal counts associated to fraud at Terraform Labs.
Should Judge Rakoff deny motions for abstract judgment, the SEC case in opposition to Terra and Kwon will reportedly begin in January 2024. Sentencing for convicted former FTX CEO Sam Bankman-Fried is scheduled for March 2024, and the trial of former Celsius CEO Alex Mashinsky is predicted in September 2024 in the identical district.
Magazine: Terra collapsed because it used hubris for collateral — Knifefight
