Do Kwon says SEC’s extradition request is impossible

Attorneys for Terraform Labs co-founder Do Kwon have actually requested a federal court to decline the United States Securities and Exchange Commissions (SECs) request to question him in the U.S. over the collapse of the Terra Money ecosystem.In a Sept. 27 filing, Kwons legal team stated that the SECs request to question him in the United States before Oct. 13 was “impossible” due to being detained in Montenegro with “no scheduled release or extradition date.” Additionally, Kwons team stated that providing a composed testimony to answer the SECs concerns would be irregular with his right to due procedure under U.S. law. “An order mandating something that is impossible serves no useful function and dangers weakening judicial authority.” Lawyers for Do Kwon claim that the SECs extradition demand is difficult. Source: CourtListenerNotably, Kwons lawyers claimed that Kwon did not straight oppose a deposition, however kept in mind that it would need to take place in Montenegro, where the UST stablecoin developer is currently out on bail. According to the filing, the cut off date for discovery in the SECs case versus Kwon and Terraform Labs is Oct. 13. Kwons legal group included that a Montenegrin court “informally” showed that it may yet hold a hearing on Oct. 13 or Oct. 26, in which it would ask Kwon the SECs questions. The SEC noted that it may deem this process to be “inadequate” and pursue another deposition of Kwon after the discovery cut-off date.Related: SEC looks for to question Terraform Labs co-founder Daniel Shin in KoreaThe SEC sued Terraform Labs and Kwon on Feb. 16 for presumably “managing a multi-billion dollar crypto property securities fraud.” Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud including an algorithmic stablecoin and other crypto possession securities.– U.S. Securities and Exchange Commission (@SECGov) February 16, 2023

In the suit, the SEC stated that Terraform and Kwon “marketed and touted” its Anchor Protocol, which at one point was marketed to pay out 20% interest on USTC deposits. Kwon and Terraform Labs chief monetary officer Han Chang-Joon were arrested in Montenegro in March 2023 after supposedly using incorrect travel files when attempting to leave the country.

Other Questions People Ask

What did Do Kwon say about the SEC's extradition request being impossible?

Do Kwon's legal team has argued that the SEC's request for him to testify in the U.S. is "impossible" due to his current detention in Montenegro. They highlighted that there is no scheduled release or extradition date, making compliance with the SEC's demands unfeasible. Kwon's attorneys emphasized that forcing him to provide testimony under these conditions would violate his right to due process under U.S.

Why do Kwon's lawyers believe the SEC's extradition request is difficult?

Kwon's lawyers contend that the SEC's request is difficult because he is currently detained in Montenegro and cannot travel to the U.S. for questioning. They noted that while Kwon does not oppose a deposition, it must occur in Montenegro, where he is out on bail. This situation complicates the SEC's timeline, especially with a discovery cut-off date approaching on October 13.

What implications does Kwon's situation have for the SEC's case?

The complications surrounding Do Kwon's extradition could significantly impact the SEC's case against him and Terraform Labs. If the SEC deems the deposition process in Montenegro inadequate, they may seek additional measures after the discovery cut-off date. This could lead to further legal challenges and delays in the proceedings, affecting both Kwon and the SEC's ability to resolve the case efficiently.

How has Kwon's legal team responded to the SEC's questioning demands?

Kwon's legal team has formally requested that a federal court reject the SEC's demand for him to testify in the U.S. They argue that mandating something impossible undermines judicial authority and serves no useful function. Furthermore, they have indicated that any questioning should take place in Montenegro, aligning with Kwon's current legal circumstances.

What are the next steps for Do Kwon regarding the SEC's extradition request?

As of now, Do Kwon's legal team is awaiting a potential hearing in Montenegro, which may occur on October 13 or October 26. This hearing could address the SEC's questions, but Kwon's lawyers have expressed concerns about whether this process will satisfy the SEC. Depending on the outcome, further actions may be necessary to address the SEC's demands and navigate Kwon's ongoing legal challenges.