The SEC has served subpoenas to Do Kwon, the director of popular altcoin project Terra; Now the subject is litigation. Court records confirm that Terraform Labs CEO and founder Do Kwon was handed two subpoenas at Messari’s Mainnet conference last month. Detail cryptocoin.com‘in.
The popular altcoin project Terra is sued with the SEC
Now, it has been confirmed that Do Kwon from Terra has faced subpoenas at Messari’s Mainnet conference. The SEC was primarily concerned with Terraform Labs’ Mirror Protocol, a DeFi platform for printing synthetic assets on Terra. Kwon and Terraform Labs are now suing the SEC over subpoenas. Terraform Labs CEO and founder Do Kwon is suing the Securities and Exchange Commission. Court filings show that Kwon and Terraform Labs fought against the US regulator after two subpoenas were served on Kwon last month. The lawsuit challenges “two subpoenas improperly issued and served by the SEC, and the SEC’s failure to keep an investigation into the “Mirror Protocol” confidential.
The lawsuit references an event at Messari’s Mainnet conference that took place in New York in September. Messari founder Ryan Selkis later posted a similar tweet confirming the story.
Although Kwon is said to be the receiver, he later denied being approached at the event in an interview with The Defiant. Kwon and Terraform Labs are best known for creating Terra, the stablecoin-focused blockchain powered by the LUNA token. LUNA has a market cap of $17.1 billion, making Terra the eleventh largest cryptocurrency project. While stablecoins have been the focus of many regulators in recent months, the SEC seems to be more interested in Terraform Labs’ Mirror Protocol, a DeFi project that allows users to mint synthetic versions of stocks like Tesla and Apple. The SEC claims that since US users can print Mirror’s synthetics, they can technically be classified as securities. Terraform Labs has yet to register any assets with the SEC.
Did the SEC violate privacy?
Kwon was served the subpoena on Mainnet. Kwon’s lawsuit disputes the SEC’s request to testify with US regulatory agencies, arguing that he resides in South Korea. He’s also concerned with the way the subpoena is served: SEC rules state that investigations must be confidential, but the agency hired a group called the Cavalier Courier & Process Service to present him with subpoenas at the event. A note in the petition reads: “Approaching Mr. Kwon in public and announcing the purpose of his approach at a summit attended by more than 2,000 people was, at worst, a deliberately arrogant spectacle to intimidate and embarrass the public.”
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