Do Kwon and Terraform Facing Rejection From US District Judge Over SEC Investigation

On April 18th, according to court records, US District Judge Jed Rakoff rejected the requests of Do Kwon and Terraform during Friday’s hearing. Do Kwon and his company had previously requested an order to force the SEC to withdraw the documents it had requested from the defendant and Luna Foundation Guard from Singapore’s regulatory authorities. It is currently unclear which records the US Securities and Exchange Commission requests from Singapore, but Terraform is headquartered in Singapore.

US judge ruled that the SEC can request Do Kwon related case documents from Singapore regulatory authorities

In recent news, Do Kwon and his company, Terraform, have been facing a legal battle with the United States Securities and Exchange Commission (SEC) over requested documents from Singaporean regulatory authorities. However, their requests to withdraw these documents have been denied by US District Judge Jed Rakoff. Here’s what you need to know about the ongoing investigation and the latest developments.

Background on Do Kwon and Terraform’s SEC Investigation

The SEC investigation into Do Kwon and Terraform began in early 2021, when the regulatory body received anonymous tips regarding possible securities law violations. As part of their investigation, the SEC requested documents from Singaporean regulatory authorities related to Terraform, which has its headquarters in the country.
Do Kwon and Terraform objected to the SEC’s requests, arguing that the regulatory body did not have the necessary jurisdiction to obtain these documents. They filed a motion to force the SEC to withdraw their request, claiming that the documents in question contained confidential and proprietary information that should not be released to the public.

Judge Rakoff Rejects Kwon and Terraform’s Requests

On April 18th, Judge Rakoff held a hearing to determine the outcome of Kwon and Terraform’s motion. After hearing arguments from both sides, he ultimately rejected their request to force the SEC to withdraw its document requests.
It is currently unclear which specific records the SEC has requested from Singaporean authorities related to Terraform. However, Judge Rakoff’s decision indicates that he believes the SEC has the necessary jurisdiction to obtain these records as part of their investigation into possible securities law violations by Do Kwon and Terraform.

What’s Next for Do Kwon and Terraform?

With their motion denied, Do Kwon and Terraform must now comply with the SEC’s request for documents relating to their company. The investigation is ongoing, and it remains to be seen what further action, if any, the SEC will take in response to the information they obtain.
However, the denial of their request to withdraw the documents is a significant blow to Do Kwon and Terraform’s defense, and it suggests that the SEC has a strong case against them.

Conclusion

The ongoing SEC investigation into Do Kwon and Terraform is a reminder of the importance of complying with securities laws and regulations. Judge Rakoff’s decision to reject their request to withdraw the documents serves as a warning to others who may try to resist regulatory authorities’ requests for information.
Ultimately, the outcome of this investigation will depend on the evidence obtained by the SEC and whether they can prove if any securities laws were violated.

FAQs

1. Why did Do Kwon and Terraform object to the SEC’s document request?
Do Kwon and Terraform claimed that the documents contained confidential and proprietary information that should not be released to the public.
2. What is the SEC investigating regarding Do Kwon and Terraform?
The SEC is investigating possible securities law violations related to Terraform.
3. What was the outcome of Do Kwon and Terraform’s motion in court?
Their motion to force the SEC to withdraw its document requests was denied by US District Judge Jed Rakoff.