US SEC Battle Against Terra and Do Kwon Takes a Turn with Judge Rakoff’s Decision

The post US SEC Battle Against Terra and Do Kwon Takes a Turn with Judge Rakoff’s Decision appeared first on Coinpedia Fintech News

Do Kwon, a key figure in Terraform Labs, finds himself amid a legal storm as the U.S. Securities and Exchange Commission (SEC) pursues legal action against both him and the company. Meanwhile, this legal drama has taken a new turn with a recent move by Judge Jed Rakoff in the Southern District of New York. 

SEC and Terraform Labs Agree

In the Southern District of New York, Judge Rakoff has just signed a protective order, introducing an element of confidentiality as the legal proceedings gear up for the pre-trial phase.

The protective order acts like a shield, keeping sensitive information like undisclosed financial details, company ownership specifics, business plans, product information, whistleblower identities, and software details under wraps during this critical stage of the high-profile case.

However, the violation of these confidentiality rules is deemed contempt of court. As per the order, all confidential discovery materials, pleadings, and motions must be filed under seal. 

Additionally, materials marked as confidential must be either returned or destroyed within 30 days post the final deposition, with certain documents retained by the SEC for record-keeping obligations.

Do Kwon Extradition Proceedings 

As the legal showdown escalates, Terraform Labs’ legal team has taken a bold step by seeking the dismissal of the lawsuit. They argue that the SEC is overstepping its boundaries and contend that the SEC has failed to prove the company offered unregistered securities. This argument forms a crucial part of Terraform Labs’ defense strategy against the SEC’s allegations.

Simultaneously, the extradition proceedings for Do Kwon, whether to the U.S. or South Korea, have hit a snag. A Montenegro appeals court has overturned a previous decision by a high court to extradite Do Kwon. This unexpected turn of events has caused a ripple effect, with Terra ecosystem tokens experiencing a surge in value following the news.

Meanwhile, Do Kwon’s extradition to the U.S. or South Korea has been delayed after a Montenegro appeals court overturned a high court’s decision to extradite Do Kwon. As the terra ecosystem tokens jumped after the news.