SEC Prevails in Court Against Do Kwon and Terraform Labs

10 months ago 7

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A United States District Court has ruled in favor of the United States Securities Commission (SEC) using expert assistance in its case against Terraform Labs and its former CEO Do Kwon.

“The Court grants summary judgment for defendants on the claims involving offering and effecting transactions in security-based swaps,” the document stated.

Court Permits SEC Witnesses Despite Terraform Labs’ Opposition

According to a recent court filing, Terraform Labs’ request to have the SEC’s expert witnesses testify as part of its case against the blockchain company, was denied.

““For the reasons stated above, the Court denies defendants’ motions to exclude the testimony of the SEC’s experts, Dr. Bruce Mizrach and Dr. Matthew Edman.”

However, the document highlights ongoing discussions regarding the eligibility of defense experts to provide testimony in court.

“Denies the SEC’s motion to exclude the testimony of defense expert Dr. Terrence Hendershott; grants the SEC’s motion to exclude the testimony of defense experts Mr. Raj Unny and Dr. Christine Parlour.”

The SEC took legal action against Terraform Labs and Kwon in February for alleged fraud that led to the collapse of Terra/Luna tokens.

The Terra Luna token is now known as Terra Luna Classic.

At the time of publication, Terra Luna Classic’s price stands at $0.00014224.

According to the document, the jury trial will commence on January 29, 2024.

Do Kwon’s Recent Legal Troubles

Kwon is currently facing legal challenges in Montenegro.

BeInCrypto recently reported that Kwon’s time in Montenegro jail was extended for an additional two months. This comes amid the ongoing dispute regarding the potential country to which he could be extradited.

“The court in Podgorica ruled that the term in custody, which would have expired on Friday, be prolonged by two months to Feb. 15,” the report stated.

However, a recent report indicates that Montenegro’s High Court has prolonged the detention of Terraform Labs co-founder Do Kwon. Reportedly, by an additional two months, until February 15.

The High Court allegedly issued a ruling last month, asserting the possibility of extraditing Kwon. However, his legal team is currently disputing this proposition.