Do Kwon lawyers reportedly dismiss SEC's securities fraud allegation

The lawyers representing Terraform Labs co-founder Do Kwon reportedly argued successful tribunal against the allegations pressed by the US Securities and Exchange Commission (SEC). The national bureau had sued Kwon for allegedly defrauding US investors by illegally offering unregistered securities.

On April 21, Do Kwon’s lawyers asked the justice to disregard the SEC suit claiming that the regulator’s acquisitions were unfounded. While requesting to disregard the lawsuit, Kwon’s lawyers asserted that US instrumentality prohibits regulators “from utilizing national securities instrumentality to asseverate jurisdiction implicit the integer assets successful this case,” reported Bloomberg.

In addition, the lawyers claimed that the SEC failed to beryllium that Kwon had defrauded US investors successful transportation with Terra’s $40 cardinal collapse of the TerraUSD (UST) and Luna (LUNA) cryptocurrencies. According to the lawyers, the stablecoin astatine contented is simply a currency, not a security.

The ineligible proceedings began erstwhile Do Kwon was arrested successful Podgorica airport, Montenegro connected March 23, portion attempting to alert to Dubai utilizing fake documents. Following his arrest, some South Korean and American authorities requested the entrepreneur’s extradition.

At the clip of writing, it remains unclear arsenic to which country, if any, would beryllium the astir apt to beryllium granted the extradition of Kwon.

Related: Do Kwon lawyers received $7 cardinal earlier Terra collapse: Report

The Seoul Southern District Court precocious denied an apprehension warrant for Terraform Labs co-founder Shin Hyun-Seong.

While prosecutors saw Kwon’s apprehension arsenic an accidental to pin down Shin, the tribunal denied the petition portion citing unconfirmed allegations and the unlikeliness of Shin being a formation hazard oregon destroying evidence.

“In the lawsuit erstwhile we person respective extradition requests, I would similar to accidental that determining to which authorities they volition beryllium extradited is based connected respective factors similar the severity of the committed transgression offense, the determination and clip erstwhile the transgression discourtesy has been committed, the bid successful which we person received the petition for extradition and respective different factors,” said Montenegrin Justice Minister Marko Kovač done an interpreter.

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