2 years ago
U.S. District Court Judge Jed Rakoff denied Do Kwon’s petition to artifact the SEC from accessing documents related to Terraform Labs (TFL) and Luna Foundation Guard (LFG) connected April 14, according to tribunal filings.
The SEC precocious requested the Monetary Authority of Singapore to supply documents related to the aforementioned companies aft officially opening enforcement enactment against Kwon.
However, Rakoff said the petition held nary merit and rejected the entreaty during a proceeding held via a telephone conference. It is unclear whether the Singaporean watchdog has handed implicit the documents to the SEC arsenic of property time.
Both regulators did not respond to requests for comment.
The SEC case
The SEC filed an official complaint against Kwon and TFL connected Feb. 16.
The charges levied against Kwon are myriad and chiefly absorption connected fraud and unregistered securities sales.
According to the regulator, the LUNA cryptocurrency is simply a information and was illegally issued and promoted by Kwon to investors some wrong and without the U.S.
The filing claims that Kwon knowingly and intentionally misled investors connected galore occasions for the involvement of profiteering from the scheme. Additionally, Kwon misled investors astir the operational quality of the algorithmic stablecoin UST.
According to the complaint, the May 2021 de-peg of UST was restored by borrowing wealth from an extracurricular investor, but Kwon lied to investors and claimed that it was the algorithmic stablecoin’s “self-healing nature.”
This caused much wealth to travel into the project, which yet suffered different depeg a twelvemonth aboriginal — but this time, with nary extracurricular savior, the stablecoin imploded.
The SEC is seeking a assemblage proceedings connected each charges triable.
Do Kwon extradition
Kwon was arrested successful Montenegro connected March 24 aft being connected the tally for astir a year.
According to reports astatine the time, helium was trying to alert to Dubai and was arrested by section authorities implicit fake recognition documents.
Kwon is facing charges successful his location state of South Korea, arsenic good arsenic the U.S. — with both countries seeking extradition.
However, it is unclear which state Kwon volition beryllium extradited to, oregon when, arsenic authorities successful Montenegro privation him to service clip successful the country.
Meanwhile, Singapore launched a ceremonial probe into TFL successful January and whitethorn privation to levy its ain charges against Kwon.
The station US justice rejects Do Kwon’s petition to artifact SEC from accessing documents appeared archetypal connected CryptoSlate.
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