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Terraform Labs and SEC agree on confidentiality terms as trial approaches
The legal team of Terraform Labs and Do Kwon have agreed with the SEC on maintaining the confidentiality of certain documents in their trial
The agreement comes in the context of charges leveled by the SEC against the LUNA founder in February, accusing them of conducting a fraudulent scheme involving cryptocurrency assets worth billions of dollars. Terra’s stablecoin UST and LUNA collapse in 2022 was one of the main drivers of the latest crypto winter, which also played a part in the FTX collapse
Source: CourtlistenerThe presiding judge in the Southern District of New York, Jed Rakoff, ratified a protective order today. This order stipulates that both parties are restricted from publicly disclosing confidential materials. Additionally, the court will seal discovery documents tagged as confidential until the commencement of the trial
Judge Rakoff indicated a low probability of sanctioning requests to unseal these documents, though he didn’t elaborate on the specific reasons for the confidentiality other than citing “good cause” for the decision.
This protective order was mutually agreed upon by the legal representatives of both the SEC and Terraform Labs, including Kwon, on December 18. Kwon is detained in Montenegro as he awaits potential extradition to the United States or South Korea.