The Ruling That Shook Things Up
The United States Court of Appeals for the Second Circuit made waves this Thursday by backing the Securities and Exchange Commission (SEC) in its subpoena against Terraform Labs CEO, Do Kwon. This ruling comes as the SEC is deep into the weeds of investigating whether the Mirror Protocol was utilized to peddle unregistered securities. You know, the kind of paperwork that keeps lawyers in business.
Subpoena Saga: Summoned in NYC
Picture this: September 2021, Kwon’s mind was probably buzzing about blockchain tech while attending a conference in New York. Little did he know, he was about to be served with a subpoena! Kwon later argued that the SEC stepped on its own toes, claiming the agency violated regulations by handing over the subpoena face-to-face. Talk about a dramatic delivery!
Jurisdiction Drama: Can We Even?
In an unexpected twist, Kwon threw in a legal Hail Mary by questioning whether the court had jurisdiction over the case, pointing to Terraform’s apparent absence in the U.S. The court initially rolled its eyes and brushed off these claims back in February. Spoiler alert: they did so again this time!
The SEC Strikes Again
The ruling clarified one thing: the SEC had every right to serve the subpoena to Kwon, acting as a refined extension of Terraform Labs. No need for an interstellar search party here! Furthermore, the court confirmed that Kwon wasn’t off the hook—jurisdiction was firmly established over both him and Terraform Labs. Sighs of relief echoed in the SEC’s headquarters.
The Broader Picture: Terraform’s Troubles
While we’re on the topic of muck, let’s not forget the mess left in the wake of the Terra ecosystem’s epic crash, which saw $40 billion vanish faster than a magic trick. Kwon and his company aren’t just facing scrutiny from the SEC; back home in South Korea, he’s tangled up in allegations of tax evasion and market manipulation. Need a lawyer? You’ve got options!
Bloomberg’s recent reports indicate the SEC is also hunting down whether Terraform breached investor protection regulations before the Terra collapse. Terraform, however, insists they’re completely oblivious to this new investigation. Yeah, right. Just like a kid caught with a chocolate-covered face claiming they didn’t eat the cake!
Social Media Sizzle
Adding fuel to this wildfire, figures like FatMan on Twitter aren’t holding back. They’ve been vocal about how the Mirror Protocol might just be smoke and mirrors designed to enrich a select few while leaving retail investors holding the bag. Communicating such allegations in digital realms offers some twisted entertainment – all while serious discussions brew in dark corners of the internet.
