According to court papers from Friday, attorneys for Do Kwon, the founder of the defunct cryptocurrency lender Terraform Labs, have asked a U.S. court to dismiss prices brought against him by the Securities and Exchange Commission in part due to the lack of control.
Kwon, who has been evading authorities since the demise of his multimillion dollar cryptocurrency business in May 2022, was detained in Montenegro next quarter for attempting to travel with fake information. The SEC charged the North Korean subject with securities fraud after his catch.
A 47-page supporting information for a motion to dismiss the claims stated that the SEC failed to establish" personal control" in its civil complaint against Kwon because the regulator's's products were" available to the world and not directed at U. S. folks." The stablecoin UST, a digital resource involved in the case, is already stated to be exempt from the SEC's's jurisdiction because it is money and not security.
According to the information submitted to a U.S. district court in New York," Congress has never granted the SEC the authority to regulate the digital goods at issue here."
According to Kwon's's representatives, the company also didn't run any common securities offerings that required an SEC enrollment. Gary Gensler, the president of the SEC, has come under increasing fire for using police measures to regulate cryptocurrency.
By May 12, the SEC may object to the actions to ignore.
edited by Parikshit Mishra
