Follow Us

US Court Behest Terra (LUNA) Founder To Act In Accordance With SEC Subpoena

Share on facebook
Share on twitter
Share on linkedin

Share

Terra (LUNA)
Share on facebook
Share on twitter
Share on linkedin

Do Kwon, Terra (LUNA) founder is directed to cooperate with an inquiry issued by the Regulatory legend SEC. As in the latest ruling, a New York court has refused an appeal the CEO filed against the US SEC about the Mirror Protocol of Terraform. 

In October 2021, the Securities and Exchange Commission (SEC) summoned Do Kwon while he was attending the Messari Mainnet conference for additional information regarding the decentralized finance (DeFi) Mirror Protocol, which facilitates the ability to trade synthetic versions of conventional stocks.

Terra (LUNA) co-founder Do Kwon filed a lawsuit against the regulatory body highlighting various technicalities but lost his case in February.

But the ruling week denied his appeal because the subpoenas were served as part of an SEC investigation into whether the Appellants broke federal securities laws in their participation in the promotion, creation, and provide to sell several virtual assets associated with the Mirror Protocol. 

And on appeal, appellants counter that the district court erred in two ways. First, the application should not have been granted as the SEC violated its Rules of Practice when it served the subpoenas by handing a copy to Kwon while he was in New York, further highlighting that the district court lacked personal jurisdiction because Appellants lacked enough contacts with the US.

And that they conclude that the district court properly granted the application of SEC. 

Furthermore, the ruling cites that the Terraform Labs maintained purposeful and extensive US contacts comprising promotion and marketing to the US consumers, retention of employees based in the US and contracts with entities based in the US. 

And the legal defeat is one of the recent instances in a thread of downfall for Do Kwon and Terraform Labs following the Terra (LUNA) collapse in May that resulted in significant losses in the entire crypto sphere. 

This sparked a thought to the US departments to carry out further regulation against the cryptocurrency industry. 

According to Hester Peirce, SEC Commissioner, she expected a boosted process of regulations after the TerraUSD (UST) and LUNA collapse.  

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00