Do-Kwon Kwon, a key figure at Terraform Labs, finds himself caught in a legal storm when the U.S. Securities and Exchange Commission (SEC) takes legal action against him and his company. Meanwhile, this legal drama recently took a new turn with the actions of Judge Jed Rakoff of the Southern District of New York.
SEC and Terraform Labs Agree
Judge Rakoff of the Southern District of New York has just signed a protective order introducing an element of confidentiality as legal proceedings prepare for the pre-trial phase.
Protective orders serve as a shield to keep sensitive information, such as financial details, company ownership details, business plans, product information, whistleblower identities and software details, secret from the public at critical stages of high-profile cases. do.
However, violating these confidentiality rules is considered contempt of court. The order requires all confidential exhibits, petitions and motions to be filed under seal.
Additionally, materials marked as confidential must be returned or destroyed within 30 days of final testimony, and certain documents are retained by the SEC for recordkeeping obligations.
Provincial handover procedure
As the legal showdown intensifies, Terraform Labs’ legal team has taken the bold step of seeking to have the lawsuit dismissed. They claim the SEC overstepped its bounds and argue that the SEC failed to prove that the company offered unregistered securities. This claim constitutes an important part of Terraform Labs’ defense strategy against the SEC’s claims.
At the same time, the process of extraditing Do-kwon to the United States also ran into difficulties. Montenegro’s Court of Appeal overturned the High Court’s previous decision to extradite Mr. Dokwon. This unexpected turn of events caused a ripple effect, with the value of Terra ecosystem tokens soaring following the news.
Meanwhile, Do-kwon’s extradition to the United States or Korea is being delayed as the Montenegro Court of Appeals overturned the High Court’s decision to extradite Do-kwon. As soon as the news broke, Terra ecosystem tokens soared.