Judge Rakoff’s Decision Shifts the Tide in the US SEC’s Fight Against Terra and Do Kwon
Do Kwon, a prominent figure within Terraform Labs, finds himself caught in a legal maelstrom as the U.S. Securities and Exchange Commission (SEC) pursues legal action against both him and the company. The latest development in this legal drama comes from Judge Jed Rakoff in the Southern District of New York.
Judge Rakoff has recently issued a protective order in the Southern District of New York, adding a layer of confidentiality to the ongoing legal proceedings as they enter the pre-trial phase. This protective order serves as a barrier, safeguarding sensitive information such as undisclosed financial details, ownership specifics, business plans, product information, whistleblower identities, and software details during this crucial stage of the high-profile case.
Breaching these confidentiality rules is considered contempt of court. According to the order, all confidential discovery materials, pleadings, and motions must be filed under seal. Furthermore, any materials marked as confidential must be either returned or destroyed within 30 days after the final deposition, with certain documents retained by the SEC for record-keeping purposes.
As the legal battle escalates, Terraform Labs’ legal team has taken a bold stance by seeking the dismissal of the lawsuit. They argue that the SEC is exceeding its jurisdiction and assert that the SEC has failed to provide evidence that the company offered unregistered securities. This argument serves as a vital component of Terraform Labs’ defense strategy against the SEC’s allegations.
At the same time, the extradition proceedings for Do Kwon, whether to the U.S. or South Korea, have encountered a setback. A Montenegro appeals court has overturned a previous decision made by a higher court to extradite Do Kwon. This unforeseen turn of events has had a ripple effect, leading to an increase in the value of Terra ecosystem tokens following the news.
Meanwhile, Do Kwon’s extradition to the U.S. or South Korea has been postponed after a Montenegro appeals court overturned the high court’s decision to extradite him. As a result, the value of terra ecosystem tokens surged in response to this development.