Do Kwon says SEC’s extradition request is impossible

Attorneys for Terraform Labs co-founder Do Kwon have requested a federal court docket to reject the USA Securities and Alternate Fee’s (SEC’s) request to query him within the U.S. over the collapse of the Terra Cash ecosystem.

In a Sept. 27 submitting, Kwon’s authorized workforce mentioned that the SEC’s request to query him in the USA earlier than Oct. 13 was “not possible” resulting from being detained in Montenegro with “no scheduled launch or extradition date.”

Moreover, Kwon’s workforce mentioned that offering a written testimony to reply the SEC’s questions could be inconsistent together with his proper to due course of underneath U.S. legislation.

“An order mandating one thing that’s not possible serves no sensible objective and dangers undermining judicial authority.”

Notably, Kwon’s attorneys claimed that Kwon didn’t straight oppose a deposition, nevertheless famous that it might have to happen in Montenegro, the place the UST stablecoin creator is at the moment out on bail.

In keeping with the submitting, the reduce off date for discovery within the SEC’s case in opposition to Kwon and Terraform Labs is Oct. 13.

Kwon’s authorized workforce added {that a} Montenegrin court docket “informally” indicated that it might but maintain a listening to on Oct. 13 or Oct. 26, by which it might ask Kwon the SEC’s questions. Nonetheless, the SEC famous that it might deem this course of to be “insufficient” and pursue one other deposition of Kwon after the invention closing date.

Associated: SEC seeks to query Terraform Labs co-founder Daniel Shin in Korea

The SEC sued Terraform Labs and Kwon on Feb. 16 for allegedly “orchestrating a multi-billion greenback crypto asset securities fraud.”

At present we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and different crypto asset securities.

— U.S. Securities and Alternate Fee (@SECGov) February 16, 2023

Within the lawsuit, the SEC mentioned that Terraform and Kwon “touted and marketed” its Anchor Protocol, which at one level was marketed to pay out 20% curiosity on USTC deposits. It additionally alleged Terraform and Kwon misled buyers in regards to the stability of Terra’s stablecoin.

Kwon and Terraform Labs’ chief monetary officer Han Chang-Joon had been arrested in Montenegro in March 2023 after allegedly utilizing false journey paperwork when attempting to go away the nation. The 2 had their authentic passports confiscated in South Korea in October 2022.

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