SEC Vs Terra And Do Kwon: Court Warns Making Confidential Materials Public

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Judge Rakoff Signs Crucial Order In US SEC Lawsuit Against Terra And Do Kwon – Crypto News

Published

3 years ago

December 21, 2023

Dripp

In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs and Terra co-founder Do Kwon, the court has issued a protective order governing the pre-trial phase of the case.

While Do Kwon faces extradition proceedings in Montenegro, Terra attorneys request for dismissal of the lawsuit claiming overreach by the SEC and failure to prove that the company offering unregistered securities.

SEC And Terra Agree to Confidentiality In Document Discovery

Judge Jed Rakoff has signed a protective order to ensure confidentiality in the U.S. SEC lawsuit against Terra and Do Kwon, according to the latest filing with the Southern District of New York.

Any person including parties, their representatives, agents, experts and consultants, all third parties providing discovery, and all persons with actual or constructive notice must adhere to the order. People or entities found disclosing any details or revealing confidential documents will be in contempt of the court.

This applies to confidential discovery materials such as non-disclosed financial information, company ownership, business plans and products, whistleblowers, and software. All confidential discovery materials, pleadings and motions, etc. are to be filed under seal.

The court ordered that the protective order shall survive the termination of the litigation. All discovery materials designated as confidential must be returned or destroyed after 30 days of the final deposition. However, the SEC can retail some documents for record-keeping obligations.

Also Read: Major Terra Luna Classic (LUNC) Proposal In Governance Voting Stage, Prices Jump

Earlier, the court agreed to accept discovery documents as sealed from Jump Crypto. However, the court warned about discretion to make public any confidential information submitted later in the motion practice or trial.

Meanwhile, Do Kwon’s extradition to the U.S. or South Korea has been delayed after a Montenegro appeals court overturned a high court’s decision to extradite Do Kwon. Terra ecosystem tokens jumped after the news.

Also Read: US SEC Loses Again In Court After Setbacks In XRP, Grayscale Lawsuits