The legal team defending Do Kwon, the co-founder and former CEO of Terraform Labs, argues that the U.S. Securities and Exchange Commission (SEC) lacks the capacity to depose Kwon, deeming it an “impossible” feat. Kwon’s legal counsel additionally maintains that the SEC’s bid for a preclusion order is premature, given that no summary judgment motion has been tendered by either side, and the cutoff for such motions remains a month away.
Do Kwon’s Lawyers Label Deposition Bid ‘Impossible’
In a document tendered to the court on September 22, 2023, it’s unveiled that the SEC is seeking authorization to interrogate the former CEO of Terraform Labs, Do Kwon. “With less than a month left in discovery, however, the SEC has not yet been afforded a critical discovery tool used in nearly every civil case—the deposition of the defendant,” the court document highlighted.
Yet, another court submission by Kwon’s legal counsel on September 27, underscores their stance that such a request is “impossible,” urging for the SEC’s petition to be rejected.
“The SEC’s motion seeks leave to take the deposition of Defendant Do Kwon in the United States before October 13, 2023, even though the SEC knows that Mr. Kwon is detained in Montenegro with no scheduled release or extradition date,” Kwon’s attorneys wrote. The former Terraform Labs CEO’s legal team added:
The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition.
The Terra blockchain ecosystem helmed by Kwon crumbled in May 2022, leading to his arrest in Montenegro in March 2023 over the use of falsified passports. This particular misstep landed Kwon a four-month tenure in the Montenegro prison system. His lawyers emphasize that Kwon has already faced the inquisitor’s chair on multiple instances. They underscored an alleged 21-hour discourse Kwon had with the SEC during their meticulous two-year-long probe.
This interrogation saga unfolded over two distinct days, with Kwon reportedly engaging for a solid five hours on each occasion, augmented by a five-hour session orchestrated by the Monetary Authority of Singapore, with the SEC in attendance. The narrative further includes another voluntary six-hour rendezvous with the SEC, as articulated by the legal representatives from Dentons US LLP.
The lawyers insist the “SEC’s motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to get discovery from Mr. Kwon.” Authorities from South Korea and the United States have sought Kwon’s extradition for his purported involvement in the downfall of the Terra blockchain ecosystem and the UST de-pegging debacle.
What do you think about Kwon’s lawyers telling the SEC that it is “impossible” to depose the Terra founder? Share your thoughts and opinions about this subject in the comments section below.