Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA


  • 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. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP