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.