SEC Requests For Do Kwon's Extradition To US, Terraform Labs Co-Founder Pushes Back

The legal team of Do Hyeong Kwon (Do Kwon), the co-founder of the blockchain firm Terraform Labs (TFL), has submitted a petition asking a federal court to reject the request made by the U.S. Securities and Exchange Commission (SEC) to depose the crypto executive before American authorities.

Kwon's legal team argued that the SEC's request to question the TFL co-founder in the U.S. before Oct. 13 is impossible because he is currently detained in Montenegro without any scheduled release or date of extradition.

"The Court should deny the SEC's motion for the simple reason that it is currently impossible for Mr. Kwon to appear for a deposition in the United States," the Wednesday court filing read, adding, "An order mandating something that is impossible serves no practical purpose and risks undermining judicial authority because the Court could not mandate compliance."

Kwon's lawyers also told the court that the crypto executive does not directly oppose a deposition, but insisted that it should take place in Montenegro where the South Korean crypto mogul is currently out on bail.

"Mr. Kwon has not refused to 'provid[e] the SEC an opportunity to depose him' and does not 'oppose[] the SEC noticing his own deposition.' The SEC is well aware that Mr. Kwon has never opposed the SEC's efforts to depose him. Although Mr. Kwon already testified for approximately 21 hours during the SEC's nearly two-year investigation—two five-hour days of testimony under oath from Mr. Kwon pursuant to an SEC subpoena, five hours of compelled testimony under oath taken by the Monetary Authority of Singapore at the request and with the participation of the SEC, and six hours of voluntary interviews with the SEC," the court filing read.

"Mr. Kwon would not oppose a request for leave to take his deposition pursuant to Rule 30(a)(2)(B) provided that the deposition take place in Montenegro in accordance with the terms of the LOR," Kwon's lawyers said.

Further, Kwon's legal team disclosed that a Montenegrin court has informally indicated that it may hold a hearing on Oct. 13 or Oct. 26 where it would ask the Terraform Labs co-founder the questions prepared by the U.S. financial regulator.

However, the SEC informed them that it might deem the said process "inadequate" and still pursue another deposition after the discovery cut-off date.

Nine months after the collapse of the Terra ecosystem, the SEC filed a lawsuit against Kwon and Terraform Labs for allegedly "orchestrating a multi-billion dollar crypto asset securities fraud."

Kwon is currently in Montenegro after the court found him guilty of possession of illegal travel documents.