According to a Bloomberg report, lawyers for Do Kwon, co-founder of Terraform Labs, have argued in court against the allegations made by the United States Securities and Exchange Commission (SEC) that Kwon defrauded U.S. investors by illegally offering unregistered securities. The lawyers have requested the judge to dismiss the SEC lawsuit, stating that the regulator’s claims are unfounded. They also argued that U.S. law prohibits regulators from asserting jurisdiction over digital assets, which are not considered securities. Furthermore, Kwon’s lawyers claimed that the SEC failed to prove that Kwon had defrauded U.S. investors in connection with the $40 billion collapse of Terra’s TerraUSD (UST) and LUNA stablecoins, with the latter being classified as a currency and not a security. Kwon was arrested in Montenegro on March 23, and both South Korean and American authorities have requested his extradition. At present, it is unknown which country, if any, will be granted the extradition request. Meanwhile, the Seoul Southern District Court has denied an arrest warrant for Terraform Labs co-founder Shin Hyun-Seong.
CertiK Reports $1.1M Exploitation of DeFi Protocol WDZD Swap
Decentralized finance (DeFi) protocol WDZD Swap was targeted in an attack on May 19, resulting in the loss of $1.1...
