Terraform Labs Seeks to Subpoena FTX Over SEC Lawsuit Defense
- Stablecoin firm requests wallet information on short sellers
- Terraform appointed new CEO to replace jailed founder Kwon
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Terraform Labs Pte. requested permission from a judge to subpoena information from collapsed crypto empire FTX, saying the data would aid the failed stablecoin issuer in its defense against fraud charges levied by the US Securities and Exchange Commission.
The SEC sued Terraform Labs and its co-founder and former chief executive officer, Do Kwon, in February, accusing them of illegally offering unregistered securities in a scheme that wiped out at least $40 billion worth of crypto. Terraform’s algorithmic stablecoin TerraUSD and its sister token Luna went to zero in May 2022, with the SEC faulting the way the two coins were designed to rely on each other to maintain value.