The crypto world was disrupted in 2022 when a development involving Terraform Labs co-founder Do Kwon’s name surfaced in a fraud case, resulting in the recent rise and dramatic fall of the USTC stablecoin, which has lost its 1:1 peg.
Different developments continue in the lawsuit against Terraform Labs (Terra) and its co-founder Do Kwon by the U.S. Securities and Exchange Commission (SEC). The court accepted sealed discovery documents from Jump Crypto and clearly stated that defendants and involved parties may disclose any confidential material to the public.
According to the court’s November 28 application statements, Judge Jed Rakoff accepted the request to keep some trial materials confidential, as indicated by Jump Crypto’s lawyers. The court requested documents from Jump Crypto as part of the investigation into the 2022 Terra-LUNA crisis.
Moreover, the court reminded Terra, Do Kwon, and other parties involved in the case of their discretion to disclose any confidential information presented at trial or during subsequent actions. In case there is a need to disclose confidential documents, the court will inform the defendants’ lawyers beforehand.
Judge Rakoff also decided that objections from Jump Crypto’s lawyer would be heard. Investors accused Jump Trading and its CEO Kanav Kariya of manipulating the UST (now USTC) price for an estimated profit of $1.3 billion.
Another decision was made last week where the judge ruled in favor of the SEC during the Daubert hearing, allowing testimonies from two experts for the SEC and one for Terra. Additionally, Montenegro’s high court also made a decision approving the extradition of Terra’s co-founder Do Kwon. However, Justice Minister Andrej Milović will decide which country will have priority in the potential extradition. The U.S. SEC believes that Do Kwon should be extradited to the U.S. first.
- Court accepts critical Jump Crypto documents.
- SEC’s position strengthened in ongoing lawsuit.
- Extradition decisions await Terra’s co-founder.