The co-founder of collapsed crypto company Terra, Do Kwon has requested a federal court to dismiss a motion from the Securities and Exchange Commission (SEC) that seeks him to be present in the US before October 13.
In a filing to US District Court of the Southern District of New York, Terraform Labs and Do Kwon has said that the SEC is familiar with Do Kwon’s detention in Montenegro, where he is not provided with any release or extradition date.
The filing calls to reject the SEC’s motion as “it would be impossible for Mr. Kwon to appear for such a deposition.” Furthermore, Do Kwon and company said that SEC deposition could be arranged in Montenegro as he is currently out on bail.
It also asked to reject the federal agency’s alternative relief that requires Do Kwon to submit a summary judgment, which is yet to be filed and its deadline is a month away. This request is also invalid as the SEC has not obtained Court’s permission to seek preclusion.
The SEC sued Do Kwon and its firm Terraform Labs in February, 2023 for an alleged crypto security fraud involving Terra (LUNA) and an algorithmic stablecoin UST. The SEC also accused Kwon and Terraform of misleading investors by exaggerating their project’s credibility.