Terraform Labs and SEC lawyers spar over whistleblower in court: Report

1:22 am
December 2, 2023
Featured image for “Terraform Labs and SEC lawyers spar over whistleblower in court: Report”

**Terraform Labs and SEC Lawyers Clash Over Whistleblower in Court: Report**

The legal representatives of the United States Securities and Exchange Commission (SEC), Terraform Labs, and co-founder Do Kwon clashed in court over information provided by a whistleblower in a securities lawsuit. The SEC alleged that Terra and Kwon “committed fraud” using the LUNA token, based on sealed evidence from an unnamed whistleblower. On the other hand, Kwon’s and Terra’s legal team contended that the SEC was inconsistent in its stance on the issue of TerraUSD (UST) depegging from the U.S. dollar.

During a hearing at the U.S. District Court for the Southern District of New York, Judge Jed Rakoff suggested that none of the filings made under seal would remain confidential if the case goes to trial. Additionally, on Nov. 28, the judge approved the confidential treatment of certain materials filed by Jump Crypto, a firm under scrutiny for its alleged involvement in the events leading to the UST depegging.

Kwon, who was arrested in Montenegro for using falsified travel documents, could potentially face extradition to the U.S. or South Korea following court approval of the proceedings. Apart from the SEC civil case, the U.S. Attorney’s Office has charged Kwon with eight criminal counts related to fraud at Terraform Labs.

If motions for summary judgment are denied, the SEC case against Terra and Kwon is expected to commence in January 2024. Furthermore, the sentencing for convicted former FTX CEO Sam Bankman-Fried is scheduled for March 2024, and the trial of former Celsius CEO Alex Mashinsky is anticipated in September 2024 in the same district.

Sources:
– Inner City Press
– Twitter

**Summary:** Lawyers for the SEC, Terraform Labs, and co-founder Do Kwon engaged in a legal battle over a whistleblower’s information in a securities lawsuit. The case involves allegations of fraud in the use of the LUNA token and the depegging of TerraUSD from the U.S. dollar. The legal proceedings may lead to extradition for Kwon and potential trials for other industry figures.

**FAQs**

1. **What are the key allegations in the SEC lawsuit against Terraform Labs and Do Kwon?**
The SEC has alleged that Terra and Kwon “committed fraud” using the LUNA token, based on sealed evidence from an unnamed whistleblower. Additionally, there are concerns regarding the depegging of TerraUSD (UST) from the U.S. dollar.

2. **What are the potential legal implications for Do Kwon?**
Do Kwon, who was arrested in Montenegro for using falsified travel documents, could face extradition to either the U.S. or South Korea following court approval of the proceedings. In addition to the SEC civil case, the U.S. Attorney’s Office has charged Kwon with eight criminal counts related to fraud at Terraform Labs.

3. **When are the legal proceedings expected to take place?**
If motions for summary judgment are denied, the SEC case against Terraform Labs and Do Kwon is anticipated to commence in January 2024. Moreover, the sentencing for convicted former FTX CEO Sam Bankman-Fried is scheduled for March 2024, and the trial of former Celsius CEO Alex Mashinsky is expected in September 2024 in the same district.


Share:

More in this category ...

11:58 am February 23, 2024

730K Investors Exit Despite Record $7B Inflows

Featured image for “730K Investors Exit Despite Record $7B Inflows”
10:49 am February 23, 2024

Tokenized Securities: Understanding the Impact on Traditional Financial Markets

7:08 am February 23, 2024

Enhance Your Technical Team’s Skills with Practical Technology Training

3:19 am February 23, 2024

Blockchain 101: An Essential Guide for Artists and Creators on Copyright Protection

3:05 am February 23, 2024

Binance Labs invests in EigenLayer restaking protocol Renzo

12:01 am February 23, 2024

Is Bitcoin’s Bullish Streak Sustainable?

Featured image for “Is Bitcoin’s Bullish Streak Sustainable?”
7:53 pm February 22, 2024

Paris Saint-Germain (PSG) Becomes First Football Club to Officially Validate a Blockchain

7:46 pm February 22, 2024

Innovations in Music Distribution: Understanding Decentralized Streaming Protocols

7:28 pm February 22, 2024

Operationalizing Ethical AI in Defense: A Holistic Approach

12:41 pm February 22, 2024

JasmyCoin rallies 295% as Bitcoin Dogs take the crypto stage by storm

12:14 pm February 22, 2024

The Future of Diamond Trading: Disrupting Traditional Channels with Blockchain

12:03 pm February 22, 2024

Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves

Featured image for “Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves”
7:50 am February 22, 2024

Polygon and StarkWare unveil Circle STARKs to streamline Zk Proofs

5:29 am February 22, 2024

Lido adds support for 1inch as withdrawal aggregator

4:44 am February 22, 2024

Unlocking the Value of Tokenized Data in Health Research and Analytics

12:05 am February 22, 2024

Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?

Featured image for “Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?”
10:17 pm February 21, 2024

Binance Introduces Portal (PORTAL) to Launchpool for Crypto Gaming

9:15 pm February 21, 2024

Smart Contracts and Blockchain: Transforming Sustainable Supply Chains

3:03 pm February 21, 2024

Brad Garlinghouse Optimistic about Ripple’s Future, Says Ripple Will Welcome XRP ETF

1:44 pm February 21, 2024

From Trust to Security: The Case for Decentralized Identity Management Systems

12:08 pm February 21, 2024

Render Token Surges 60% In a Month, Gains Traction with Investors

Featured image for “Render Token Surges 60% In a Month, Gains Traction with Investors”
8:29 am February 21, 2024

Climate change predictions: Anticipating and adapting to a warming world

7:51 am February 21, 2024

Starknet’s STRK sees volatile market debut following airdrop

6:14 am February 21, 2024

Securing the Food Supply: How Blockchain is Combating Counterfeit Products

12:39 am February 21, 2024

Analysts say $3k “a relatively small obstacle”

12:11 am February 21, 2024

Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge

Featured image for “Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge”
10:44 pm February 20, 2024

The Potential of Tokenized Derivatives: Unlocking New Opportunities for Investors

8:40 pm February 20, 2024

How IBM is using Real User Monitoring and DNS to deliver premium Global Server Load Balancing for business-critical applications 

5:27 pm February 20, 2024

Human Institute Teams Up with Polygon Labs and Animoca Brands to Introduce ZKP-Powered Palm Recognition Technology

3:16 pm February 20, 2024

The Future of E-Commerce: Unleashing the Potential of Blockchain Technology