Do Kwon Says SEC Is Out of Bounds in Pursuing Crypto Fraud Suit

  • Terraform co-founder urges judge to throw out SEC lawsuit
  • Kwon is detained in Montenegro facing forgery charges
Do KwonPhotographer: Woohae Cho/Bloomberg
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Crypto entrepreneur Do Kwon’s lawyers say a US regulator’s lawsuit accusing him and Terraform Labs Pte of securities fraud is unfounded, in part, because the stable coin at issue is a currency, not a security.

US law prohibits regulators “from using federal securities law to assert jurisdiction over the digital assets in this case,” Kwon’s lawyers said Friday in a request to a judge to dismiss the lawsuit.