Do Kwon's attorney, who represents Terraform Labs co-founder, has rejected the allegations made by the US Securities and Exchange Commission (SEC) that Kwon committed securities fraud by illegally selling unregistered securities to US investors.
On April 21, Kwon's lawyer requested the dismissal of the SEC's case, claiming that the regulator's allegations were baseless, according to Bloomberg. While requesting the dismissal, Kwon's attorney argued that US law prohibits regulators from using securities laws to assert authority over digital assets.
Furthermore, Kwon's lawyer argued that the SEC cannot prove whether Kwon defrauded US investors related to the collapse of TerraUSD (UST) and LUNA, and clarified that UST Stablecoin is a currency, not a security.
The legal proceedings began after Kwon was arrested at Incheon International Airport in South Korea on March 23 while attempting to board a flight to the United States with forged documents. Following his arrest, both South Korea and the United States requested extradition of the suspect.
