Terraform Labs founder Do Kwon has asked a US court to deny the Securities and Exchange Commission’s (SEC) request to question him in the US before mid-October on account of him still being detained in Montenegro.
Kwon’s legal team claimed in a filing that the SEC’s request to grill him over the collapse of the Terra ecosystem is “impossible,” pointing to the fact that he still has no definite release date or scheduled extradition.
They also object to the idea of Kwon being asked to provide a written testimony, branding it “inconsistent with his right to due process under the United States Constitution.”
Kwon has, however, thrown the SEC a lifeline, stating that he’s not entirely opposed to the idea of a deposition — provided it takes place in Montenegro. This would involve a Montenegrin court asking questions on the SEC’s behalf.
According to Kwon’s lawyers, “… the SEC’s brief says nothing about the location of the deposition, which was the only point of dispute between the parties.”
The filing adds, “… the SEC asks the Court to grant it leave to take the deposition of a person “confined in prison,” omitting that it intends to notice the deposition to occur over 4,500 miles away from the jail in which Mr. Kwon is detained by a foreign sovereign.
However, despite this seeming compromise, the SEC says that such an arrangement may be “inadequate” and says it may seek another deposition in the US after the discovery cut-off period.
The SEC alleges that Terraform Labs and Kwon defrauded investors in a scheme involving multiple unregistered securities. It also points toward Kwon and Terraform’s efforts to create, advertise, and maintain the unsustainable lending protocol Anchor.