Terra’s Do Kwon Was Served by SEC, New Lawsuit Shows

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Terraform Labs CEO Do Kwon is suing the U.S. Securities and Exchange Commission (SEC).

The builder of decentralized finance (DeFi) platform Terra confirmed he was served with an SEC subpoena at Messari’s Mainnet convention final month, in accordance with a lawsuit filed Friday.

The matter stretches again to May 2021, when SEC’s Enforcement Division emailed Kwon, in accordance with the submitting.

At challenge is Terra’s Mirror Protocol, a decentralized finance (DeFi) platform on which artificial shares mirroring the value of main U.S. companies are minted and traded.

Read extra: Terra Brings 24-Hour Trading to Synthetic Versions of Stocks Like TSLA and AAPL

The subpoena request that Kwon present testimony to U.S. regulators. As a resident of South Korea, Kwon is contesting that.

Terraform’s go well with towards the SEC is uncommon however, in accordance with crypto lawyer Stephen Palley, preemptive authorized motion would possibly make sense on this case.

“It’s a reminder to regulators that there are rules of engagement that they need to abide by as well,” Palley informed CoinDesk.

Kwon informed The Defiant’s Brady Dale in September that he had not been served.

Nikhilesh De and Cheyenne Ligon contributed reporting.

This is a growing story and will likely be up to date.