The authorized staff of Terraform Labs and Do Kwon have agreed with the SEC on sustaining the confidentiality of sure paperwork of their trial.
The agreement comes within the context of fees leveled by the SEC in opposition to the LUNA founder in February, accusing them of conducting a fraudulent scheme involving cryptocurrency property price billions of {dollars}. Terra’s stablecoin UST and LUNA collapse in 2022 was one of many foremost drivers of the newest crypto winter, which additionally performed a component within the FTX collapse.
The presiding decide within the Southern District of New York, Jed Rakoff, ratified a protecting order right this moment. This order stipulates that each events are restricted from publicly disclosing confidential supplies. Moreover, the courtroom will seal discovery paperwork tagged as confidential till the graduation of the trial.
Decide Rakoff indicated a low likelihood of sanctioning requests to unseal these paperwork, although he didn’t elaborate on the precise causes for the confidentiality apart from citing “good trigger” for the choice.
This protecting order was mutually agreed upon by the authorized representatives of each the SEC and Terraform Labs, together with Kwon, on December 18. Kwon is detained in Montenegro as he awaits potential extradition to america or South Korea.