{"id":460258,"date":"2022-06-09T23:30:00","date_gmt":"2022-06-09T20:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/appeals-court-rules-do-kwon-terraform-labs-must-heed-sec-subpoena-served-in-september\/"},"modified":"2022-06-09T23:30:00","modified_gmt":"2022-06-09T20:30:00","slug":"appeals-court-rules-do-kwon-terraform-labs-must-heed-sec-subpoena-served-in-september","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/appeals-court-rules-do-kwon-terraform-labs-must-heed-sec-subpoena-served-in-september\/","title":{"rendered":"# Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d816ec5c73\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d816ec5c73\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/appeals-court-rules-do-kwon-terraform-labs-must-heed-sec-subpoena-served-in-september\/#%E2%80%9D_Appeals_court_rules_Do_Kwon_Terraform_Labs_must_heed_SEC_subpoena_served_in_September_%E2%80%9C\" >&#8221; Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Appeals_court_rules_Do_Kwon_Terraform_Labs_must_heed_SEC_subpoena_served_in_September_%E2%80%9C\"><\/span>&#8221; Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMjQ1NWE0YTItZjg1OS00ZmUxLTljNzQtODZhZmY4MTA0ZjQ3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The United States Court of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>eals for the Second Circuit on Thursday rejected Terraform Labs CEO Do Kwon\u2019s dispute of a subpoena by the Securities and Exchange Commission (SEC). The federal agency was seeking documents and testimony in connection with its investigation of whether Terra used the Mirror Protocol to sell unregistered securities.<\/p>\n<p>Kwon was served with the subpoena in September 2021 while he was attending a conference in New York City. Kwon <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.scribd.com\/document\/534537134\/Terraform-v-SEC\">claimed<\/a> in an October filing that the SEC had violated its own rules, the Administrative Procedure Act and other regulations by serving the subpoena in person. He later also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.569722\/gov.uscourts.nysd.569722.18.0.pdf\">disputed<\/a> the court\u2019s jurisdiction over the case due to Terraform\u2019s lack of contact with the United States. That court <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.569722\/gov.uscourts.nysd.569722.28.0_1.pdf\">rejected<\/a> those claims in February.<\/p>\n<p>The appeals court <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/litigation\/litreleases\/2022\/lr25415.htm\">ruled<\/a> that the subpoena was properly served and that the SEC could serve Terraform as a corporate entity through Kwon. Furthermore, the appeals court found that the district court did have jurisdiction over Terraform Labs and Kwon.<\/p>\n<p><strong><em>Related: Luna Classic pricing error leads to Mirror Protocol exploit<\/em><\/strong><\/p>\n<p>The SEC began its interaction with Terraform and Kwon in this case in May 2021, according to the petition filed in October. The SEC emailed Kwon seeking his voluntary cooperation in its investigation and, acting on that request, Kwon and his legal representatives spoke to SEC attorneys in July. Terraform\u2019s lawyers were actively negotiating with the SEC at the time the subpoena was served. <\/p>\n<p>Besides the collapse of the $40 billion Terra ecosystem, Kwon and Terraform have faced charges of tax evasion and market manipulation in South Korea. A local <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> outlet al\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/news.kbs.co.kr\/news\/view.do?ncd=5474696\">tied<\/a> Terraform with money laundering in a May 30 report. A <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of tweets a week earlier also leveled charges of malfeasance against Terraform.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"> Here&#8217;s a deep dive into chain data suggesting Mirror Protocol, TFL&#8217;s &#8216;decentralized&#8217; stock exchange, is really just a farce designed to enrich Do Kwon\/VCs while manipulating governance and screwing over retail. Thank you for being so bad at hiding on-chain moves, Do. <\/p>\n<p>\u2014 FatMan (@FatManTerra) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1529391352856838144?ref_src=twsrc%5Etfw\">May 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Bloomberg <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-09\/sec-investigating-ust-stablecoin-blowup-in-fresh-threat-to-terra?sref=323RPL5z\">reported<\/a> Thursday, citing an unnamed source, that the SEC is also investigating whether Terraform violated investor protection regulations before the Terra collapse. Terraform told Bloomberg in a statement that it was unaware of that investigation.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The federal agency was seeking documents and testimony in connection&#8230;<\/p>\n","protected":false},"author":1,"featured_media":460259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMjQ1NWE0YTItZjg1OS00ZmUxLTljNzQtODZhZmY4MTA0ZjQ3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74898,122378,70934],"class_list":["post-460258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-sec","tag-terra","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=460258"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/460259"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=460258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=460258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=460258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}