In 2022, the association of Terraform Labs co-founder Do Kwon with a fraud case led to the devaluation of USTC stablecoin. The United States Securities and Exchange Commission (SEC) is witnessing new developments in the lawsuit against Terraform Labs (Terra) and co-founder Do Kwon. The court accepted confidential discovery documents from Jump Crypto and indicated that defendants could disclose the secret materials to the public.
These documents were requested from Jump Crypto as part of the investigation into the 2022 Terra-LUNA crisis. The court reminded that Terra, Do Kwon, and other parties involved in the case have the right to disclose the confidential information presented in court. When the disclosure of secret documents is necessary, the court will inform the defendants’ attorneys beforehand.
Judge Jed Rakoff also decided to hear the objections of Jump Crypto’s lawyer. Investors accused Jump Trading and its CEO Kanav Kariya of manipulating the price of UST (now USTC) to make a profit of approximately $1.3 billion. Additionally, last week’s Daubert hearing resulted in a decision in favor of the SEC, accepting the testimonies of two experts from the SEC and one from Terra.
Montenegro’s high court also approved the extradition of Terra’s co-founder Do Kwon. However, Justice Minister Andrej Milović will decide which country will have the priority in the extradition matter. The US SEC believes that Do Kwon should be extradited to the US first.
