The United States Securities and Exchange Commission got approval for a motion against Terraform Labs, a blockchain platform. It is expected that SEC can now seek help from South Korea to question Daniel Shin, co-founder, Terraform Labs, as it files a lawsuit against the firm and Do Kwon, co-founder, stated Cointelegraph.
Sources revealed that on August 16, 2023, Jed Rakoff, District Judge, approved the SEC’s motion made on July 10, 2023. The motion is expected to ask if it could seek to question the Terra co-founder. Supposedly, the petition also includes the requesting documents from the Chai Corporation, a Seoul-based payments provider, Cointelegraph added.
With insights from a filing made by SEC, the SEC plans to question Shin on Kwon’s role at Chai, how Chai used the Terra blockchain and Chai’s statement about its relation with Terraform.
Furthermore, SEC mentioned that Terraform and Kwon made false transactions of TerraKRW (KRT), a Korean won pegged stablecoin, to show that Chai was using the blockchain, Cointelegraph concluded.
(With insights from Cointelegraph)
