Terraform Labs and SEC lawyers close in court over driver: Report
The United States Securities and Exchange Commission and lawyers representing Terraform Labs and co-founder Do Kwon have appeared in court over whistleblower allegations in the securities lawsuit.
According to a transcript of court proceedings provided by Inner City Press on November 30, the SEC reiterated its claim that Terra and Kwon “perpetrated fraud” using the LUNA token, citing sealed evidence provided by an anonymous hacker. Kwon and Terra's legal team have argued that the SEC is “inverse” on TerraUSD (UST) relative to the US dollar.
“The SEC misrepresented Do Kwon's statements,” said a lawyer for Kwon and Terra, according to the report. “A reporter, who must not be named, hid some of the copies.”
OK – now on SEC v Terraform Labs and Do Kwon, Inner City Press is tweeting, under https://t.co/zRKCGlc0T4
— Inner City Press (@innercitypress) November 30, 2023
The arguments came before the U.S. District Court for the Southern District of New York, where Judge Jed Rakoff said none of the seals would remain secret if the case went to court. In the year On November 28, the judge approved the confidential treatment of some materials provided by Jump Crypto, the company was involved in the events that led to the corruption of the UST.
RELATED: Do Kwon may serve time in US and South Korean prisons, prosecutors say.
Kwon, who was arrested in March by authorities in Montenegro using a forged travel document, could be extradited to either the United States or South Korea after receiving a court ruling. In addition to the SEC's civil suit, the U.S. Attorney's Office charged Kwon with eight criminal counts related to the fraud at Terraform Labs.
If Judge Rakoff denies summary judgment motions, the SEC's case against Terra and Kwon will reportedly begin in January 2024. Sentencing for former FTX CEO Sam Bankman-Fried is set for March 2024. Former Celsius CEO Alex Mashinsky is expected to go on trial. In September 2024 in the same district.
Magazine: Terra falls because she uses hubris as leverage – Knifefight
