The U.S. Securities and Exchange Commission (SEC) has made a request to the court on September 22. In its application, SEC asks the court to grant permission to take a testimony from the defendant Do Kwon.
Additionally, SEC has also presented an alternative method in case obtaining Do Kwon’s testimony proves to be difficult. Alongside this, SEC calls on the court to prevent any statement made by Do Kwon from being used in the summary judgment. Terraform Labs and Do Kwon, the defendants, are expected to submit their responses on September 26. SEC had provided more details to support this request.
SEC had previously made a similar application. A petition was approved by the Judge for an international letter of request to be issued for the provision of assistance in relation to Daniel Shin, the co-founder of Chai Corporation and Terraform Labs. However, the defendant’s request to send a subpoena for documents to a third party was rejected by the judge.
Judge Jed Rakoff drew attention by refusing to follow Judge Torres’ decision in the Ripple vs SEC case. Furthermore, federal judges seem to oppose SEC due to its approach being described as hypocritical, arbitrary, and capricious, especially in light of the recent developments in the court process.
Following the events in KaradaÄŸ, the judge sentenced Do Kwon to four months in prison for passport forgery. Moreover, considering the circumstances, the extradition should take place to South Korea instead of the U.S.
In addition, the request made by SEC to completely prevent Do Kwon’s statement in the summary judgment raised questions within the crypto community. The response of the defendants could reveal many details about the significance of Kwon’s statement.