Crypto founder Do Kwon explains why he's suing the SEC

[bbc.reporter]

This is a very important lawsuit not only for Do Kwon and his project Terra. It is also very much important for the cryptospace because this lawsuit might set a precedent for other lawsuits to point to and specify how the SEC is abusing their power to persecute innocent people. We should follow this lawsuit’s development.



Terraform Labs co-founder and CEO Do Kwon, who sued the SEC Friday to quash a recent subpoena, explained to Yahoo Finance at Monday's All Markets Summit that regulators are still learning that some of the code and protocols launched in the sector are no longer controlled by centralized entities, but rather communities.

Declining to comment on the specifics of his latest lawsuit against the SEC, Kwon pointed to the reality of of how new technology is changing how companies like his quickly cede control of projects that are run by token holders.

Read in full https://finance.yahoo.com/news/crypto-founder-do-kwon-explains-why-hes-suing-the-sec-195945610.html

[kaseygriffin]

According to court documents, the SEC lacks jurisdiction over Terraform Labs and Kwon. The lawsuit claims that:

The SEC attorneys are well aware that the TFL and Mr. Kwon have repeatedly asserted that the SEC has no jurisdiction over TFL and Mr. Kwon, and at no time have asked the Dentons' attorneys whether they were authorized to accept the subpoenas to appear in court or not.

Additionally, the lawsuit claims that the SEC has also broken its own rules regarding the management of these incidents. The subpoenas were served publicly, and in fact, one of the assistants at Messari's Mainnet witnessed the delivery of these subpoenas. This goes against the policy of the SEC which states that these official matters must be kept confidential until the organization has otherwise stated.

The lawsuit asks for the subpoena to be deemed void, and also seeks damages, including attorneys' fees and relief, if the court deems appropriate. And this will certainly be the focus next time, I don't know which way the outcome of the case will go, but this action has shown me the controversial procedural limitations that need to be removed soon.

[gwdf1]

There were many times when SEC meddled in crypto market affairs this way the trial between SEC and Ripple has been going on for a year and it seems to continue in 2022, and actually, price of ripple is really under pressure because of this, so the trial with SEC is really dangerous, but I hope that Do Kwon and his project Terra will endure this trial.

[Strongkored]

He has the courage to do this lawsuit and realizes that in the SEC there are many regulators who don't even fully understand how crypto works, and even those who break their own rules.
The outcome of this lawsuit will be very influential in the future for the crypto world and the impact is positive.

[cabron]

Terraform has these synthetic assets that are actually based on real assets on the stock market which the SEC finds unlawful. Something that is beyond decentralization I guess. Does anyone agree with that?

It's a free country so Kwon has his rights, the suit is just for the to lawsuit be void. Synthetic assets like these though seem to have violated the SEC regulation which I guess SEC has the right to interfere but then serving the subpoena while about to present at crypto conference seems to be dramatic.

[bbc.reporter]

News update.

It appears Do Kwon’s overconfident lawyer who promised a sure win was disbarred and his team is presently getting a second opinion on their case versus the SEC.

I have not read the full update, however, Tether skeptic Cas Piancey has given him the warning last month. This is very embarrassing for Do Kwon and his team.

Source https://mobile.twitter.com/caesar_milhous/status/1458671673943597056?s=12