A New York court has ordered cryptocurrency platform Terraform Labs and its head, Do Kwon, to appear before the SEC to testify with documentation on the Mirror project.
Judge of the Southern District of New York
satisfied a motion by the U.S. Securities and Exchange Commission (SEC) to issue an order requiring Terraform Labs to comply with a regulatory subpoena requiring the SEC to provide documents and testify on Project Mirror.
Terraform Labs has previously refused to comply with the requirements of the regulator. In turn, the SEC filed a lawsuit against the company. In a conference call hearing, the Southern District of New York court ruled that Terraform Labs is required to comply with the SEC subpoena.
“In connection with the minutes of the February 17, 2022 meeting, the SEC application was granted. The court ruled that Terraform Labs and Do Kwon must comply with the above subpoena,” the court added that it is considering an appeal.
“The entry into force of the ruling has been delayed for 14 days for further briefing regarding a possible appeal of this ruling,” the litigation document says.
An investigation launched by the U.S. Securities and Exchange Commission into Project Mirror further led to litigation between regulator Terraform Labs.
During the collection of information, the regulator invited the founder of the cryptocurrency company Terraform Labs, Do Kwon, to cooperate and demanded documents for the Mirror project. Kwon cooperated with the SEC but refused to provide documents needed for the investigation. Subsequently, the Commission used the services of a third party to send a summons to Kwon to appear before the Commission.
The head of Terraform Labs was outraged that, by involving a third party, the commission violated the rules for serving the summons. As a result, the head of the company filed a lawsuit against the SEC, accusing the regulator of non-compliance with the regulations. In addition, Do Kwon criticized the actions of the supervisory authorities and stated that they devote too much time to studying the activities of legalized companies instead of pursuing fraudsters, and thereby hinder the development of the crypto industry. In turn, the SEC filed a counterclaim against Terraform Labs and demanded the implementation of the agenda items.
Source: Bits
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