Developments continue to unfold for Terraform Labs and its founder Do Kwon. Currently engaged in a legal battle with the SEC at the United States District Court for the Southern District of New York, Kwon is preparing a strategic move against the agency. In this context, it is reported that Kwon is ready to challenge the testimony of Dr. Matthew Edman, a key expert witness for the SEC.
A Closer Look at Terraform Labs’ Defense
Terraform Labs and Do Kwon actively continue to contest the allegations made by the SEC. In this regard, the lawyers for Terra Labs and Kwon argue that the court’s opinion needs to be reconsidered, which is based on a statement made by Dr. Edman.
Meanwhile, in their latest filings, Terraform and Kwon highlighted that the court did not accept that it lacked the necessary data to verify Dr. Edman’s claims.
To clarify, in the court’s initial decision, it was suggested that the defendants had reversed the burden of proof by failing to produce certain inputs to the LP Servers.
However, Terraform Labs points out that the court overlooked the fact that it was not the defendants but Chai who owned the LP Server and the related inputs. This detail had been acknowledged by the court in a different context in the past.
Expert Witness Testimony Faces Groundbreaking Change
The defendants appear to be making an effort to turn the case in their favor by highlighting significant legal developments such as the changes made to Federal Evidence Rule 702, which came into effect on December 1, 2023.
Furthermore, Terraform Labs points out that Dr. Edman’s methods were not sufficiently explained and his testimony, based solely on assumptions without supporting evidence, does not meet these new rules.
In addition, Terra Labs and Kwon’s side argues that the court’s opinion did not properly consider these changes, creating a compelling situation for the decision to be reversed.
As the challenging legal process continues, Terraform Labs and Do Kwon persist in opposing the lawsuit brought by the SEC, aiming for a more favorable outcome in the reassessment of Dr. Edman’s testimony.
