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The legal team of Terraform Labs’ former CEO Do Kwon declares that the United States Securities and Exchange Commission (SEC) demands for his deposition are unrealistic.
“The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition,” the filing declares.
Do Kwon’s Lawyers Assert SEC Deposition Request Is Infeasible
In a recent court filing, Kwon’s legal team vehemently opposed the SEC’s request to prevent them from submitting requests on Kwon’s behalf:
“The SEC’s request for alternative relief—an order precluding Defendants from submitting a statement by Mr. Kwon on summary judgement—should also be rejected.”
On June 19, Kwon was sentenced to four months in prison in Montenegro. He was convicted of having counterfeit passports from Belgium and Costa Rica in his possession.
Kwon’s activities in Montenegro before his arrest remain unclear, but the SEC is pursuing him in connection with the ecosystem’s collapse in May 2022.
He played a role in the creation of two digital tokens, Terra and TerraUSD, both of which experienced a collapse, resulting in an approximate market wipeout of $40 billion.
Read more: What Is Terra (LUNA)?
According to the filing, Kwon has never opposed the SEC the opportunity to depose him. It claims that Kwon has already testified to the SEC for “approximately 21 hours” over the two-year investigation:
“Two five-hour days of testimony under oath from Mr. Kwon pursuant to an SEC subpoena, five hours of compelled testimony under oath taken by the Monetary Authority of Singapore at the request and with the participation of the SEC, and six hours of voluntary interviews with the SEC.”
This follows ongoing efforts by the SEC to extradite Kwon to the United States.
On August 18, reports revealed that a US District Judge ruled that the SEC may enlist the South Korean’s government aid in its ongoing investigation into Kwon.
This is a developing story and more information will be added as it becomes available.
