Lawyers for the founder of Terraform Labs reject allegations of fraud filed by the US Securities and Exchange Commission

It was reported that the lawyers representing the co-founder of the company Terraform Labs, Do KwonThey argued in court against the allegations US Securities and Exchange Commission (SEC).that Kwan Kwon He defrauded US investors, by illegally offering unregistered securities.

Also read: South Korea: Freezing $175 million of the assets of “Terraform Labs”

Where lawyers asked Do Kwon A judge on April 21 dismissed the SEC’s lawsuit, claiming the agency’s takeover was unfounded, according to a Bloomberg report.

As confirmed by lawyers Kwan Kwon During the motion to dismiss the lawsuit, US law prohibited regulators from using federal securities law to assert jurisdiction over digital assets in this case.

On the other hand, the lawyers alleged that the SEC failed to prove that Kwan Kwon US investors have been defrauded, in connection with the collapse TerraUSD (UST) AndLuna worth 40 billion dollars.

It is worth noting that the legal procedures started following the arrest kwan At Podgorica airport in Montenegro on March 23, while trying to fly to Dubai using forged documents.

After his arrest, both the South Korean and US authorities requested the businessman’s extradition, but it is still not clear to date, to which country the extradition will take place.

In turn, said the Minister of Justice of Montenegro Marko Kovač On March 29:

“I would say that when we receive several requests for extradition, the determination of the country to which they will be extradited is based on several factors, such as the gravity of the criminal offense committed, the place and time in which the criminal offense was committed, the order in which we received the extradition request and several other factors.”

Recently, the Seoul South District Court rejected an arrest warrant for the company’s co-founder Terraform Labs, Shin Hyun-Seong.

Also read: South Korea: Authorities are trying to arrest another accomplice in the “Terraform Labs” case

Although the prosecutors were found in the arrest kwan Chance to catch Shin ShinHowever, the court denied the application, citing the unsubstantiated nature of the allegations, and its unwillingness to have Shin Shin dangerous to flight or to destroy evidence.