According to Kwon’s legal team, the Securities and Exchange Commission (SEC) was unsuccessful in providing evidence to support their accusations that Kwon was involved in deceiving American investors in relation to the collapse of TerraUSD (UST) and Luna (LUNA), which had a combined value of $40 billion.’
Reportedly, Do Kwon’s legal representatives presented arguments in court refuting the accusations made by the US Securities and Exchange Commission (SEC). Kwon, who is a co-founder of Terraform Labs, was sued by the federal agency for supposedly deceiving American investors by providing unregistered securities in an unlawful manner.
Do Kwon’s legal team reportedly urged the judge on April 21 to reject the SEC’s lawsuit, arguing that the accusations made by the regulator were baseless.
According to Bloomberg’s report, while requesting the dismissal of the lawsuit, Kwon’s lawyers claimed that US law forbids regulators from asserting jurisdiction over digital assets in this case by using federal securities law.
Related Reading: Terra: Do Kwon Caught Using Fake Passport in Montenegro
Moreover, Kwon’s lawyers argued that the SEC could not provide sufficient evidence to support their allegations that Kwon had deceived American investors in relation to the $40 billion decline of TerraUSD (UST) and Luna cryptocurrencies. The legal team further claimed that the stablecoin in question was a form of currency rather than a security.
Legal proceedings were initiated when Do Kwon was apprehended at Podgorica airport in Montenegro on March 23 while attempting to travel to Dubai using counterfeit documents. After his arrest, authorities from both South Korea and the United States requested Kwon’s extradition.
Marko Kovac, the Justice Minister of Montenegro, said through an interpreter, “In the case when we receive several extradition requests, I would like to say that determining to which state they will be extradited is based on several factors like the severity of the committed criminal offense, the location and time when the criminal offense has been committed, the order in which we have received the request for extradition and several other factors.”
