SEC Vs Terra And Do Kwon: Court Warns Making Confidential Materials Public

In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs (Terra) and co-founder Do Kwon, the court has agreed to submissions of discovery documents as sealed from Jump Crypto. However, the court made it clear to the defendants and its parties including Jump Crypto that it can make public any confidential materials.

Court Accepts Confidential Documents From Jump Crypto

According to a court filing late November 28, Judge Jed Rakoff agreed to confidential treatment of certain materials as outlined in a letter by Jump Crypto’s attorney. The court seeks documents from Jump Crypto as part of the discovery of whether it was involved in the 2022 Terra-LUNA crisis.

However, the court has reminded Terra, Do Kwon, and related parties about the discretion to make public any confidential information submitted later in the motion practice or trial. The court will provide prior notice to the defendants’ counsel when the disclosure of confidential documents is termed necessary by the court.

Judge Rakoff also agreed to hear any objections from the counsel of Jump Crypto. Investors accused Jump Trading and its CEO Kanav Kariya of manipulating UST (now USTC) price for a profit of nearly $1.3 billion.

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SEC Gains Upper Hand in the Terra Lawsuit

Last week, the judge ruled in favor of the SEC in the Daubert hearing, approving two experts for SEC and one expert for Terra to testify in the lawsuit.

Meanwhile, Montenegro’s higher court has approved the extradition of Terra co-founder Do Kwon. Minister of Justice Andrej Milović will decide which country has priority in case of possible extradition. US SEC contemplating Do Kwon’s extradition to the U.S. first.

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