Do Kwon, founder of Terra (LUNA) in SEC sights

DeFi vs. SEC

The crypto community was in turmoil last month after a speaker at the Messari Mainnet conference, held in New York on September 20, received a subpoena from a representative of the Securities and Exchange Commission (SEC). Do Kwon, founder of Terra (LUNA) and Terraform Labs has only just confirmed the information.

In question, Terra’s Mirror application, a decentralized finance protocol (DeFi) on which synthetic shares reflecting the price of large American companies are issued and traded. So, rather than buying Tesla stock, you can buy its synthetic mTSLA version.

The subpoena asks Kwon to testify before US regulators. As a resident of South Korea, Kwon disputes this claim. The case dates back to May 2021, the US financial policeman allegedly emailed Kwon and received no response, according to the filing.

The founder of Terra strikes back

According to a court document, Do Kwon is in turn suing the SEC over the subpoena.

The subpoena, filed Friday by Terraform Labs and Kwon against the SEC, claims two subpoenas were “improperly issued and served.” She adds that the agency failed to maintain the confidentiality of its investigation into the Mirror protocol. Indeed, the subpoenas were served on Mr. Kwon in public.

“Mr. Kwon was approached by the usher as he exited an escalator at the Mainnet conference in Messari and was on his way to a presentation that did not relate to the Mirror protocol. “

Conference attendees jokingly wondered if the SEC had booked a room at the Marriott Marquis hotel, and Messari CEO Ryan Selkis said in a video interview:

“We invited members of Congress and regulators to this event, we paid a lot of their passes, and they chose to hide near the escalators instead of finding out what is really going on in. the area “.

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About the author: Florent David


Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFTs).
All articles by Florent David.

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