Do Kwon's legal team claims that the United States Securities and Exchange Commission (SEC) lacks the authority to subpoena Kwon, calling it a "impossible" task. Kwon is the co-founder and former CEO of Terraform Labs. The SEC's request for a preclusion order, according to Kwon's legal representative, is premature because neither party has filed a move for summary judgment, and the deadline for such applications is still one month away.
Deposition bid is deemed "impossible" by Do Kwon's attorneys
It was revealed in a document submitted to the court on September 22, 2023, that the SEC is requesting permission to question Do Kwon, the former CEO of Terraform Labs. However, the SEC has not yet been given access to a crucial discovery method that is employed in almost every civil case—the defendant's deposition, according to the court papers.
Yet another court filing by Kwon's legal representatives on September 27 reiterates their position that such a request is "impossible," and they ask that the SEC's petition be denied.
"The SEC's motion seeks leave to take the deposition of Defendant Do Kwon in the United States before October 13, 2023, even though the SEC knows that Mr. Kwon is detained in Montenegro with no scheduled release or extradition date," the defense team for Kwon wrote. The legal team for the former CEO of Terraform Labs added:
It would be difficult for Mr. Kwon to show up for such a deposition, hence the motion ought to be refused.
Kwon was in charge of the Terra blockchain ecosystem, which collapsed in May 2022. As a result, his use of forged passports led to his arrest in Montenegro in March 2023. Kwon was sentenced to four months in prison in Montenegro for this specific transgression. His attorneys note that Kwon has already appeared before the inquisitor's chair several times. They emphasized an alleged 21-hour conversation Kwon allegedly had with the SEC during their thorough investigation that lasted two years.
This lengthy interrogation process took place over the course of two separate days, with Kwon apparently cooperating for a minimum of five hours each time. This was in addition to a five-hour session arranged by the Monetary Authority of Singapore with participation from the SEC. According to the legal counsel from Dentons US LLP, the story also describes a second voluntary six-hour meeting with the SEC.
"SEC's motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to obtain discovery from Mr. Kwon," the attorneys assert. Kwon is wanted by South Korean and American authorities for allegedly being involved in the collapse of the Terra blockchain ecosystem and the UST de-pegging scandal.
What do you think of Kwon's attorneys informing the SEC that removing the Terra founder from office would be "impossible"? Post your ideas and viewpoints on this topic in the comments area below.