Coin Edition -
- Terraform Labs and Do Kwon lawyers move to strengthen their case for a summary judgment in their lawsuit against the SEC.
- The filing shows the lawyers aim to rely on the SEC’s misconduct in the Debt Box lawsuit.
- The judge handling the Debt Box has hinted at potential fines against the SEC for misleading conduct.
Lawyers representing Terraform Labs and Do Kwon have moved to strengthen their defense in the ongoing lawsuit brought by the U.S. Securities and Exchange Commission against the two.
In a recent filing, the legal teams notified Judge Rakoff of the conduct of the SEC in a related regulatory lawsuit. The SEC has come under criticism in its lawsuit against Debt Box/Digital Licensing for its conduct in the case.
As noted in reports, in the lawsuits against Digital Licensing, Judge Robert J. Shelby hinted at potential fines against the SEC, noting deceptive statements in its action against the crypto firm. The defendants claimed that this information is relevant as it questions the SEC’s use of excerpts of evidence.
Previously, the Terraforms and Do Kwon legal teams accused the regulator of making misleading statements about the founder, according to court transcripts provided by Inner City Press. Elsewhere, the SEC has also drawn criticism from crypto circles over its handling of cases against blockchain and cryptocurrency firms.
The allegations against the company and its founder revolve around the TerraLuna depeg, which wiped billions off the crypto market and precipitated a prolonged bear market. The SEC alleged Do Kwon committed fraud using the LUNA token, arguments which the defense has since rejected.
Meanwhile, Do Kwon’s extradition to either the U.S. or his home country, South Korea, got a green light from Montenegro officials, where he is imprisoned. Do Kwon is wanted by regulatory officials in the U.S. and South Korea. However, the report noted that extradition will only be possible after Do Kwon serves his sentence in the country.
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