Court Decision Favors SEC Against Do Kwon and Terraform Labs

A United States District Court has ruled in favor of the United States Securities Commission (SEC) in its case against Terraform Labs and its former CEO Do Kwon.

“The Court grants summary judgment for defendants on the claims involving offering and effecting transactions in security-based swaps,” the document stated.

Court Allows SEC Witnesses, Despite Terraform Labs Push For Against This

According to a recent court filing, Terraform Labs’ request to have the SEC’s expert witnesses testify as part of its case against the now-defunct project, was denied.

““For the reasons stated above, the Court denies defendants’ motions to exclude the testimony of the SEC’s experts, Dr. Bruce Mizrach and Dr. Matthew Edman.”

However, the document highlights ongoing discussions regarding the eligibility of defense experts to provide testimony in court.

“Denies the SEC’s motion to exclude the testimony of defense expert Dr. Terrence Hendershott; grants the SEC’s motion to exclude the testimony of defense experts Mr. Raj Unny and Dr. Christine Parlour.”

Read more: What Is a Rug Pull? A Guide to the Web3 Scam

Do Kwon’s Recent Legal Troubles

Terraform co-founder Do Kwon is facing an extension of his detention in a Montenegro jail for an additional two months. This comes amid the ongoing dispute regarding the potential country to which he could be extradited.

“The court in Podgorica ruled that the term in custody, which would have expired on Friday, be prolonged by two months to Feb. 15,” the report stated.

A recent report indicates that Montenegro’s High Court has prolonged the detention of Terraform Labs co-founder Do Kwon. Reportedly, by an additional two months, until February 15.

The High Court allegedly issued a ruling last month, asserting the possibility of extraditing Kwon. However, his legal team is currently disputing this proposition.

Read more: 15 Most Common Crypto Scams To Look Out For