US District Judge Jed Rakoff has denied Kwon and Terraform’s plea to force the SEC to withdraw its request for documents. The documents in question are in possession of the Singaporean regulator and involve Luna Foundation Guard.
Based on reports, the documents were established to maintain TerraUSD’s stability. The stablecoin is worth $1. According to court records, the decision was made during a hearing on Friday.
Reports further indicate that the judge asserted that the SEC is allowed to request records from Singaporean Monetary Authority as part of its lawsuit against Terraform Labs and its founder, Do Kwon
On the other hand, the SEC is looking into whether Kwon’s firm violated securities laws in connection with its initial coin offering (ICO). Per the reports, the request for documents from MAS is part of the SEC’s effort to gather evidence.
In relation, Do Kwon and his company, Terraform Labs, have recently faced several setbacks. Kwon’s arrest in Montenegro earlier this year marked a turning point in the ongoing legal battle surrounding the firm’s initial coin offering.
Kwon had been on the run from authorities for months but was eventually apprehended and is now facing charges related to securities fraud. With the denial of his request to block the SEC’s access to MAS documents, Kwon and Terraform Labs are now facing another obstacle in defending against the SEC’s investigation.
It remains to be seen how this latest development will impact the case. However, Kwon and his company are facing tough battles on multiple fronts.
