Terraform Labs and its CEO, Do Kwon, are challenging the U.S. Securities and Exchange Commission (SEC), claiming the regulator improperly served Kwon subpoenas at Mainnet 2021 despite not having jurisdiction over Kwon or his company. They have asked a New York court to dismiss the subpoenas.
Terraform filed a motion last Friday opposing an SEC effort to compel Kwon and Terraform Labs to cooperate with subpoenas issued in the SEC’s ongoing investigation of Terra’s Mirror Protocol. The SEC filed its motion last month after Terraform and Kwon sued the agency on claims that it violated its own rules and the Due Process clause of the U.S. Constitution in serving Kwon in September.
Because the SEC’s lawyers did not get permission from the Commissioners to subpoena Kwon – which must be done in cases where the subpoenaed party is represented by lawyers – Kwon’s attorneys say he was improperly served, rendering the subpoenas invalid.
The Mirror Protocol is a decentralized finance…