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.
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Other Questions People Ask
What did Do Kwon say about the SEC's extradition request being impossible?
Do Kwon's legal team stated that the SEC's request to question him in the U.S. is "impossible" due to his detention in Montenegro, where there is no scheduled release or extradition date. They emphasized that mandating something impossible undermines judicial authority and his right to due process under U.S. law.
Why does Do Kwon's team believe the SEC's request is unreasonable?
Kwon's attorneys argue that the SEC's request for him to provide testimony in the U.S. is unreasonable because he is currently detained in Montenegro without a clear timeline for release. They pointed out that such an order serves no useful function and could weaken judicial authority. Additionally, they highlighted that any deposition should take place in Montenegro, where Kwon is out on bail.
What are the implications of the SEC's request for Do Kwon?
The SEC's request for a deposition could have significant implications for Do Kwon, especially as it relates to the ongoing case against him and Terraform Labs. If the SEC deems the process in Montenegro inadequate, they may pursue further actions after the discovery cut-off date of October 13. This situation raises concerns about Kwon's legal rights and the potential for complications in his defense strategy.
How does Do Kwon's situation affect the SEC's case against him?
Do Kwon's current detention and the impossibility of complying with the SEC's request could delay proceedings in the case against him and Terraform Labs. His legal team is pushing back against the SEC's demands, which may lead to further legal battles regarding jurisdiction and due process. The outcome of these developments could significantly impact the SEC's ability to build its case against Kwon and his company.
What are the next steps for Do Kwon regarding the SEC's extradition request?
The next steps for Do Kwon involve awaiting a decision from a Montenegrin court, which may hold a hearing on October 13 or October 26 to address the SEC's questions. His legal team is advocating for any deposition to occur in Montenegro, emphasizing that compliance with U.S. requests is currently unfeasible. Depending on the court's ruling, Kwon may need to prepare for additional legal challenges from the SEC.