The legal team of Terraform Labs’ former CEO Do Kwon declares that the United States Securities and Exchange Commission (SEC) demands for his deposition are unrealistic.
“The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition,” Kwon’s lawyers declared.
Do Kwon’s Lawyers Assert SEC Deposition Request Is Infeasible
In a recent court filing, Kwon’s legal team vehemently opposed the SEC’s request to prevent them from submitting requests on Kwon’s behalf:
“The SEC’s request for alternative relief—an order precluding Defendants from submitting a statement by Mr. Kwon on summary judgement—should also be rejected.”
According to the filing, Kwon has never opposed the SEC the opportunity to depose him. Kwon’s lawyers claim that he has already testified to the SEC for “approximately 21 hours” over the two-year investigation.
In compliance with an SEC subpoena, Kwon allegedly spent two full five-hour days testifying under oath.
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Additionally, he claims to have devoted five hours to testifying before Singapore authorities. Furthermore, he allegedly participated in six hours of interviews with the SEC.
Kwon presently remains in custody at a Montenegrin prison. On June 19, He was convicted of having counterfeit passports from Belgium and Costa Rica in his possession. He received a four-month incarceration sentence.
Kwon’s activities in Montenegro before his arrest remain unclear. However, the SEC is pursuing him in connection with the Terra ecosystem’s collapse in May 2022.
Kwon Under Scrutiny By Two National Regulatory Authorities
He played a role in the creation of two digital tokens, Terra LUNA and TerraUSD, both of which experienced a collapse, resulting in an approximate market wipeout of $40 billion.
Shortly after the collapse, LUNA was rebranded to LUNA Classic. At the time of publication, the current price is $0.000065.
As a result, both the SEC and South Korean authorities have filed fraud charges against Kwon in connection with the collapse.
This follows ongoing efforts by the SEC to extradite Kwon to the United States.
On August 18, reports revealed that a US District Judge granted the SEC permission to enlist South Korean government aid in its ongoing investigation into Kwon.
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