Terraform Labs: Genesis under pressure as federal judge insists on subpoena compliance
The post Terraform Labs: Genesis under pressure as federal judge insists on subpoena compliance appeared on BitcoinEthereumNews.com. TLDR U.S. District Court Judge orders Genesis Global to produce specific documents for Terraform Labs by Oct. 18, following non-compliance with an earlier deadline. The ongoing legal confrontation highlights increasing regulatory scrutiny in the crypto sector, with potential long-term impacts on industry practices. In a recent directive from the U.S. District Court of the Southern District of New York, Judge Jed Rakoff has clarified his stance: Genesis Global must immediately produce specific documents that have been requested via a subpoena from Terraform Labs. Issued on Oct. 13, this order provides Genesis a tight window of five days, leading up to Oct. 18, to comply. Earlier, a subpoena dated Sept. 12 had stipulated Oct. 9 as the deadline for Genesis to produce the required documents. But, curiously, the nature of these sought-after documents remains undisclosed, fanning the flames of industry speculation concerning the data Terraform Labs might be pursuing. Terraform Labs in legal turmoil A broader narrative enveloping this subpoena is the ongoing clash between the U.S. Securities and Exchange Commission (SEC) and both Terraform Labs and its co-founder and CEO, Do Kwon. This legal conflict was spotlighted in February, highlighting Kwon’s various challenges. The CEO’s current predicament involves a jail stint in Montenegro due to allegations of using falsified travel papers. However, his issues are just a part of the saga, as the SEC’s lawsuit against Terraform Labs gains momentum in the U.S. The SEC’s core grievance is rooted in claims that Terraform Labs and Kwon might have engaged in deceptive tactics, misleading investors concerning their principal algorithmic stablecoin, Terra USD (UST). Notably, the chaos surrounding Terra had a domino effect, playing a pivotal role in the crypto market downturn of 2022. This economic downturn witnessed the bankruptcy of industry giants like FTX, BlockFi, Celsius Network, and Voyager Digital. Genesis…
The post Terraform Labs: Genesis under pressure as federal judge insists on subpoena compliance appeared on BitcoinEthereumNews.com.
TLDR U.S. District Court Judge orders Genesis Global to produce specific documents for Terraform Labs by Oct. 18, following non-compliance with an earlier deadline. The ongoing legal confrontation highlights increasing regulatory scrutiny in the crypto sector, with potential long-term impacts on industry practices. In a recent directive from the U.S. District Court of the Southern District of New York, Judge Jed Rakoff has clarified his stance: Genesis Global must immediately produce specific documents that have been requested via a subpoena from Terraform Labs. Issued on Oct. 13, this order provides Genesis a tight window of five days, leading up to Oct. 18, to comply. Earlier, a subpoena dated Sept. 12 had stipulated Oct. 9 as the deadline for Genesis to produce the required documents. But, curiously, the nature of these sought-after documents remains undisclosed, fanning the flames of industry speculation concerning the data Terraform Labs might be pursuing. Terraform Labs in legal turmoil A broader narrative enveloping this subpoena is the ongoing clash between the U.S. Securities and Exchange Commission (SEC) and both Terraform Labs and its co-founder and CEO, Do Kwon. This legal conflict was spotlighted in February, highlighting Kwon’s various challenges. The CEO’s current predicament involves a jail stint in Montenegro due to allegations of using falsified travel papers. However, his issues are just a part of the saga, as the SEC’s lawsuit against Terraform Labs gains momentum in the U.S. The SEC’s core grievance is rooted in claims that Terraform Labs and Kwon might have engaged in deceptive tactics, misleading investors concerning their principal algorithmic stablecoin, Terra USD (UST). Notably, the chaos surrounding Terra had a domino effect, playing a pivotal role in the crypto market downturn of 2022. This economic downturn witnessed the bankruptcy of industry giants like FTX, BlockFi, Celsius Network, and Voyager Digital. Genesis…
What's Your Reaction?
