In a twist of events that spans international borders, the U.S. Securities and Exchange Commission (SEC) is pursuing the deposition of Terraform Labs co-founder Do Kwon in its ongoing lawsuit, all while Kwon finds himself imprisoned in Montenegro on passport fraud allegations. This legal tangle raises questions about Kwon’s potential extradition and the SEC’s tactics. Let’s delve into the details of this complex situation and what it means for the future.

The SEC’s Latest Move

In a recent court filing on September 22, the SEC made a significant move by requesting the court to grant permission for the deposition of Do Kwon. This development has added a new layer of intrigue to the already complicated legal battle between the SEC and Terraform Labs.

The SEC is determined to obtain Kwon’s deposition, but it has also presented an alternative plan should securing Kwon’s deposition prove challenging. The SEC has urged the court to consider prohibiting the use of any declaration from Do Kwon in the summary judgment, should deposition become unattainable.

Upcoming Response Deadline

Defendants Terraform Labs and Do Kwon are scheduled to submit their response to these developments on September 26. The SEC has supplied additional details in support of its motion, setting the stage for what could be a critical juncture in the legal proceedings.

International Judicial Assistance

The SEC’s pursuit of Do Kwon doesn’t stop at American borders. In a separate but related motion, the SEC successfully secured the approval of Judge Jed Rakoff for the issuance of letters of request for international judicial assistance. This move pertained to Chai Corporation and Terraform Labs co-founder Daniel Shin.

However, it’s worth noting that the judge denied a defendant’s request to subpoena a third party for documents, indicating the complexities of international legal cooperation in cases of this nature.

Do Kwon’s Legal Predicament

Do Kwon’s current legal predicament revolves around passport forgery allegations. A Montenegro judge sentenced him to four months of imprisonment, but the twist in the tale lies in his expected extradition. Contrary to some expectations, Kwon is set to be extradited to South Korea, not the United States, as per the existing conditions.

SEC’s Controversial Approach

The SEC’s recent moves have not been without controversy. Some federal judges have criticized the SEC’s approach, labeling it as hypocritical, arbitrary, and capricious. This criticism is reminiscent of the ongoing Ripple vs. SEC lawsuit, where Judge Jed Rakoff refused to align with the SEC’s stance.

These developments have left many observers in the crypto community questioning the SEC’s tactics and motives. The impending response from the defendants will likely shed more light on whether Do Kwon’s declaration holds significant importance in the proceedings.

The International Intrigue Continues

As the legal battles unfold, the international intrigue surrounding Do Kwon’s case continues to captivate the crypto community and beyond. The intricacies of international legal cooperation, extradition procedures, and the SEC’s approach to these matters have added a layer of complexity to an already intricate situation.

What Lies Ahead

The coming days and weeks will undoubtedly bring further revelations and twists to this ongoing saga. Will Do Kwon’s deposition be secured by the SEC, and if so, what impact will it have on the lawsuit? How will the international extradition process play out, and what role will South Korea play in this drama?

As the legal proceedings progress, one thing remains certain: the eyes of the crypto world are firmly fixed on the outcome of this case, as it could have far-reaching implications for the industry and its participants.

Conclusion

The SEC’s motion to depose Do Kwon, despite his imprisonment in Montenegro, has added a new dimension to the Terraform Labs lawsuit. The international legal intricacies, coupled with the SEC’s controversial approach, have turned this case into a compelling legal drama that continues to unfold. The crypto community awaits the next chapter in this story, where the fate of Do Kwon and the implications for the crypto industry hang in the balance.