The lawyers representing Terraform Labs and its CEO Do Kwon in the ongoing court case with the US Securities and Exchange Commission (SEC) have pushed against an extradition request of the securities regulator.
In a petition submitted on September 27, the defendants are nudging the court to reject the SEC’s request to transport Do Kwon to the US for questioning over his alleged involvement in the crash of the Terra ecosystem.
Back in February, the SEC filed a lawsuit against Terraform Labs and its co-founder and CEO Do Hyeong Kwon, accusing both parties of orchestrating a multi-billion dollar fraud by promoting investment in an inter-connected suite of crypto asset securities, which included the algorithmic stablecoin TerraUSD (UST) and digital asset LUNA.
SEC’s Request Is Impossible, Do Kwon Lawyers Say
According to their latest petition, the attorneys representing Do Kwon believe the SEC’s request to extradite the Terraform CEO to the US before October 13, the court’s deadline for discovery, is impossible.
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The lawyers supported this statement with the fact that the defendant is currently detained in Montenegro with “no scheduled release or extradition date,” a piece of information that is well-known to the SEC.
The lawyers also countered the SEC’s alternative request for a preclusion order, which prevents Do Kwon from filing a motion on summary judgment, stating that such a request impedes the Court’s individual Rules of Practice.
However, Do Kwon’s lawyers stated in the filing that the defendant is very open to a deposition, albeit it would need to occur on Montenegrin grounds.
They also claim that there is a possibility of a court hearing in Montenegro on October 13 or October 26, during which Do Kwon will be presented with the SEC’s question as stated in the commission’s initial Letter of Request for a deposition.
Back in March, Do Kwon, alongside Terraform Labs’ chief financial officer, Han Chang-Joon, was arrested by Montenegrin officials on charges of document forgery while trying to flee the Balkan nation. In June, a Montenegro Basic Court found the Terraform boss guilty of the accusations, issuing a sentence of four months imprisonment.
The Saga Continues
This recent petition by Do Kwon represents the latest development in a court case marked by some headlining events. In July, the defendants had filed a motion to dismiss following the historic partial victory of Ripple Labs against the SEC. However, this appeal was rejected by Presiding Judge Jed Rakeoff, who also expressed his disagreement with the ruling in the Ripple v. SEC court case.
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It is worth stating that there is also an extradition order for Do Kwon from his home country, South Korea, who is also probing the Terraform Labs co-founder over the collapse of the Terra crypto project, an incident that wiped out over $40 billion from the crypto market.
In August, the SEC and the South Korean government formed a partnership to obtain more evidence as both parties look to strengthen their investigation efforts.