The US Securities and Exchange Commission (SEC) has received permission from a judge to seek assistance from the South Korean government in interviewing Daniel Shin and Do Kwon, co-founders of Terraform Labs. US District Judge Jed Rakoff ruled in favor of the SEC, allowing them to utilize a 1970 treaty that governs international evidence-gathering requests. While Kwon did not contest the SEC’s request, he denies any misconduct.
As part of the SEC’s investigation into Terraform and its former CEO, the agency plans to obtain evidence from Chai Corp., a payments company in Seoul founded by Kwon. The SEC is attempting to validate the allegations made in a lawsuit filed in February, which accuses Terraform and Kwon of orchestrating a multi-billion dollar crypto asset securities fraud. The fraud allegedly involved the algorithmic stablecoin TerraUSD and other crypto securities.
The relationship between Chai and Terra has been a point of contention. Reports suggest that Kwon may have exaggerated the extent and duration of the partnership between the two companies. The SEC claims that Chai Payments did not use the Terraform Blockchain as agreed in their 2019 partnership deal. Instead, they allege that defendants deceptively replicated Chai payments onto the Terraform blockchain to create the appearance that they were occurring on the blockchain, when in reality they were made through traditional means.
Kwon is not only facing the SEC lawsuit but also criminal charges in both the US and South Korea. He has previously stated that the charges against him in his home country are politically motivated.
Overall, the SEC is seeking assistance from the South Korean government to interview Shin and Kwon as part of their investigation into the allegations of securities fraud at Terraform Labs. This ruling by Judge Rakoff allows the SEC to utilize a treaty to gather the necessary evidence. The relationship between Terra and Chai Corp. is under scrutiny, with the SEC claiming that payments were not processed on the Terraform blockchain as agreed. Kwon denies any wrongdoing but is facing charges in both the US and South Korea..
#Judge #Grants #SECs #Motion #Interrogate #Terra #Labs #Cofounder #Daniel #Shin
As part of the SEC’s investigation into Terraform and its former CEO, the agency plans to obtain evidence from Chai Corp., a payments company in Seoul founded by Kwon. The SEC is attempting to validate the allegations made in a lawsuit filed in February, which accuses Terraform and Kwon of orchestrating a multi-billion dollar crypto asset securities fraud. The fraud allegedly involved the algorithmic stablecoin TerraUSD and other crypto securities.
The relationship between Chai and Terra has been a point of contention. Reports suggest that Kwon may have exaggerated the extent and duration of the partnership between the two companies. The SEC claims that Chai Payments did not use the Terraform Blockchain as agreed in their 2019 partnership deal. Instead, they allege that defendants deceptively replicated Chai payments onto the Terraform blockchain to create the appearance that they were occurring on the blockchain, when in reality they were made through traditional means.
Kwon is not only facing the SEC lawsuit but also criminal charges in both the US and South Korea. He has previously stated that the charges against him in his home country are politically motivated.
Overall, the SEC is seeking assistance from the South Korean government to interview Shin and Kwon as part of their investigation into the allegations of securities fraud at Terraform Labs. This ruling by Judge Rakoff allows the SEC to utilize a treaty to gather the necessary evidence. The relationship between Terra and Chai Corp. is under scrutiny, with the SEC claiming that payments were not processed on the Terraform blockchain as agreed. Kwon denies any wrongdoing but is facing charges in both the US and South Korea..
#Judge #Grants #SECs #Motion #Interrogate #Terra #Labs #Cofounder #Daniel #Shin
