Do Kwon, the co-founder and CEO of Terraform Labs, has suffered a legal setback after a U.S. judge rejected his attempt to block the U.S.SEC from acquiring specific records on the company’s operations.
The judge denied Kwon’s plea to deny the SEC access to papers about Terraform Labs’ operations in Singapore.
According to a Bloomberg report, the Monetary Authority of Singapore (MAS) is being asked for the document.
According to court documents, U.S. District Court denied Do Kwon and Terraform’s plea to persuade SEC to drop its request for documents held by the Singaporean regulator and the defendants last Friday for the Southern District Judge Jed Rakoff.
The issue also involves Luna Foundation Guard, a fund created to keep the value of the business’ algorithmic stablecoin Terra USD at $1.
Related Reading: Do Kwon and TFL Officially Charged With Fraud
Do Kwon Recent Arrest
Concerning the company’s algorithmic stablecoin Terra USD and sister token LUNA, the SEC filed a lawsuit against Singapore-based Terraform Labs, and CEO Do Kwon this February.
According to the agency, Do Kwon and Terraform Labs sold “crypto asset securities” to investors hoping to make money by purchasing Terra UST and related Terra products under the pretense that the tokens’ value would rise.
The action came after a probe into Terra’s demise and whether its stablecoin violated federal securities laws was launched in June 2022.
After months on the run, Do Kwon was captured last month in Montenegro.
The police later revealed that the United States and South Korea had requested the arrest and extradition of the Terra co-founder.
Read Also: Do Kwon Funneled $7 Million to Law Firm Ahead of Terra’s Downfall