Terra’s Do Kwon Was Served by SEC, New Lawsuit Shows

Spread the love

Terraform Labs CEO Do Kwon is suing the U.S. Securities and Exchange Commission (SEC).

The builder of decentralized finance (DeFi) platform Terra confirmed he was served with an SEC subpoena at Messari’s Mainnet conference last month, according to a lawsuit filed Friday.

The matter stretches back to May 2021, when SEC’s Enforcement Division emailed Kwon, according to the filing.

At issue is Terra’s Mirror Protocol, a decentralized finance (DeFi) platform on which synthetic stocks mirroring the price of major U.S. firms are minted and traded.

Read more: Terra Brings 24-Hour Trading to Synthetic Versions of Stocks Like TSLA and AAPL

The subpoena request that Kwon provide testimony to U.S. regulators. As a resident of South Korea, Kwon is contesting that.

Terraform’s suit against the SEC is unusual but, according to crypto lawyer Stephen Palley, preemptive legal action might make sense in this case.

“It’s a reminder to regulators that there are rules of engagement that they need to abide by as well,” Anderson Kill lawyer Stephen Palley told CoinDesk.

Kwon told The Defiant’s Brady Dale in September that he had not been served.

Nikhilesh De and Cheyenne Ligon contributed reporting.

This is a developing story and will be updated.

Read MoreCoinDesk

Recent Posts

  • Cryptocurrency

Altcoin Investments In 2022: A Compact Guide

Bitcoin has been around since 2009 and is the first and most well-known cryptocurrency.However, many…

  • Cryptocurrency

Crypto payments will once again “make sense” with layer-2 scaling

Ethereum layer 2 is a concept that, in my opinion, been somewhat forgotten, and one…

  • NFT

Want Your NFTs to Be Liquid? Here Are the Best Choices for 2022

Not all NFT loan and liquidity systems are made equal, and some may provide more…

  • Cryptocurrency

Basic understanding of Bitcoin Wallet

Cryptocurrency has been there for a while now and recently it's all over. Millennials have…

  • Gaming & Gambling

mBit Casino – Legit Bitcoin Casino Review 2022

mBit casino is a fully regulated and licensed Bitcoin casino that provides new players a…

  • Cryptocurrency

Voyager Digital submits a Chapter 11 bankruptcy and recovery strategy

Voyager Digital submits a Chapter 11 bankruptcy filing and offers a recovery strategy. Voyager Digital…