Bankruptcy judge signs off on order allowing Terraform Labs to subpoena FTX entities

A judge in the bankruptcy case for defunct crypto exchange FTX has released an order permitting Terraform Labs to subpoena info that could be used in its case brought by the United States Securities and Exchange Commission (SEC). In a July 31 filing in U.S. Bankruptcy Court for the District of Delaware, Judge John Dorsey said Terraform Labs was allowed to serve FTX Trading and FTX United States with subpoenas intended at gathering evidence the firm could utilize in its defense from claims of fraud by the SEC. Terraform Labs requested the capability to subpoena records related to digital wallets used by brief sellers linked to FTX entities around May 2022, in the middle of its failure.Related: Terraform Labs designates new CEO from existing team: ReportTerraform Labs was one of the very first crypto companies to collapse in 2022, partly contributing to a significant market crash and triggering the cost of lots of tokens to drop.