Kwon Do-hyung's Side Requests Court to Dismiss Lawsuit... "US SEC's Improper Exercise of Authority"
The party responsible for the 'Terra incident' that caused the cryptocurrency crash, Kwon Do-hyung, argued that the lawsuit filed by the U.S. securities authorities is an inappropriate exercise of authority and requested the court to dismiss the case.
According to Bloomberg News, Kwon Do-hyung's attorney claimed on the 21st (local time) that the fraud charges filed against him by the U.S. Securities and Exchange Commission (SEC) are baseless and that the lawsuit should be dismissed.
The attorney reportedly argued, "Terra, a stablecoin, is currency and not a security."
Earlier, in February, the SEC filed a lawsuit against Terraform Labs, the issuer of Terra and Luna, and its CEO Kwon at the U.S. District Court for the Southern District of New York on fraud charges. According to the SEC, Terraform Labs and Kwon are accused of conducting a fraudulent scheme involving the offering and sale of unregistered securities worth at least $40 billion (approximately 53.3 trillion KRW).
Kwon was arrested in Montenegro in March on charges of passport forgery while on the run overseas and is currently undergoing trial in custody. Kwon's attorney stated that under U.S. law, the authorities are not allowed to claim jurisdiction by applying federal securities laws to digital assets in this case, and requested the court to dismiss the lawsuit.
The attorney added, "The SEC's inappropriate exercise of authority attempting to classify all cryptocurrencies as 'securities' will fail."
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Shortly after his arrest in Montenegro, Kwon was also indicted by the New York prosecutor's office on a total of eight charges, including securities fraud. While Kwon's detention period in Montenegro has been extended, his trial is scheduled for May 11. South Korea and the United States are competing to secure custody by requesting Montenegro authorities to extradite CEO Kwon.
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