TechFlow news: In the latest development of the U.S. Securities and Exchange Commission's (SEC) lawsuit against Terraform Labs and its co-founder Do Kwon, the SEC is seeking Kwon's testimony.
According to court filings submitted on September 22, the SEC urged the court to permit notice for the deposition of defendant Do Kwon. Additionally, if obtaining Kwon's testimony proves difficult, the SEC proposed alternative measures, urging the court to bar the use of any statements by Do Kwon in summary judgment proceedings. Defendant Terraform Labs and Do Kwon are scheduled to file their response on September 26.
The SEC has submitted a memorandum with further details supporting this motion. Earlier, the SEC's motion to issue a letter of request for international judicial assistance related to Chai Corporation and Terraform Labs co-founder Daniel Shin was approved by the judge. The defendants' request to subpoena documents from third parties was denied. Judge Jed Rakoff declined to follow Judge Torres's ruling in the Ripple v. SEC case. Current developments in the litigation are unfavorable to the SEC, with a federal judge criticizing the SEC's conduct as hypocritical, arbitrary, and capricious.
