SEC Seeks Court Order To Enforce Subpoena Against Terraform Labs

The feud between the Singapore-based crypto startup Terraform Labs, its CEO Do Kwon and the Securities and Exchange Commission (SEC) has recently escalated as the U.S. regulator went to court to seek an order to enforce an investigative subpoena.

During a crypto industry event in September in New York, Terraform Labs founder Kwon was served with a subpoena. He then later filed a lawsuit against the Securities and Exchange Commission, arguing in court that he was improperly served and that the agency had violated his rights to due process.

The lawsuit was filed on October 24 and confirmed the subpoena serving at the Mainnet conference, as well as details about the SEC’s investigation into Terraform Labs.

With the latest move the SEC wants a court order that would compel Kwon and Terraform Labs to “comply with investigative subpoenas for documents and testimony.”

According to SEC press statement:

“The SEC’s application seeks an order from the court directing Terraform Labs and Kwon to show cause why the court should not compel them to produce documents as required by the subpoenas and compel Kwon to appear for testimony. The application further seeks an order from the court, following its ruling on the order to show cause, directing Terraform Labs and Kwon to comply fully with the subpoenas. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.”

The price of native token of Terra (LUNA) didn’t seem to react to the news, as LUNA has continued to trade sideways the past 7 days.

It seems that the crypto market is getting used to the SEC harassment and it has less impact on the market, after the on-going lawsuit with Ripple has been dragging along since December last year.