- The SEC overstepped its jurisdiction and subpoenaed Terraform Lab's CEO on his way to "Mainnet 2021" summit in New York.
- CEO Do Kwon's and Terraform's attorneys argued the subpoena was an improper attempt by the SEC outside of their jurisdiction.
- Do Kwon and Terraform Labs first worked with the SEC in May 2021, participating voluntarily in a five-hour interrogation.
Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs.
Terraform v. SEC proceedings ensue as analysts turn bullish on LUNA price.
In May 2021, the Securities & Exchange Commission (SEC) contacted Do Kwon to talk about the operation of Mirror Protocol and Terraform Labs' association with the company. The Terraform Labs CEO met with the SEC lawyers voluntarily and answered questions in a five-hour-long interrogation.
The SEC asked Terraform Labs to produce documents related to the subject, and the back and forth was on. The breaking point arrived in September 2021: while still conversing with Terraform's representatives, the SEC subpoenaed CEO Do Kwon, serving documents to Messari's Mainnet launch event.
Court filings have confirmed that Do Kwon was served with two subpoenas at Messari's Mainnet conference in September. The Terraform Labs founder and CEO is now suing the SEC over the subpoenas and overstepping their jurisdiction.
Kwon's lawsuit challenges the subpoenas, saying they were
improperly issued and served by the SEC and the SEC's failure to keep confidential an investigation into the "Mirror Protocol."
Further, the filings note that on September 15, 2021, the SEC's attorneys had stated that enforcement action was warranted. Five days later, the CEO was subpoenaed at the summit event.
Kwon is a resident of South Korea, and while the SEC's rules state that investigations are confidential, the agency served a subpoena through "Cavalier Courier and Process Service" to an event with over 2000 attendees.
The court filing reads:
Hiring a "Cavalier" process to approach Mr. Kwon in public and announce the purpose of his approach, at a summit attended by more than 2,000 people was, at worst, an intentionally brazen display meant to publicly intimidate and embarrass, and at best reckless, creating social media and press speculation about the incident within minutes of the attempted service of process.
In contrast to the SEC's investigation and the ongoing lawsuit, analysts have revealed a bullish outlook on LUNA price. The native asset of the platform posted over 23% in gains last week.
Pseudonymous cryptocurrency analyst @Trader_XO predicts LUNA will rank in the top 10 cryptocurrencies by market capitalization. The analyst has set a target of $50 for the asset.
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