Terra and Do Kwon have been compelled by a New York court to comply with SEC subpoenas issued during a crypto conference last year.
Terraform Labs and its CEO Do Kwon have been compelled to cooperate with subpoenas issued by the Securities and Exchange Commission (SEC) by the United States District Court in New York.
The subpoenas were issued as part of the SEC’s investigation into Mirror Protocol, a decentralized finance (DeFi) project built on Terra.
According to the court filing, on February 17, 2022, the court considered all relevant parties’ filings and heard an “oral argument.”
United States District Judge Paul Oetken ruled, “For the reasons stated on the record at the February 17, 2022 conference, the SEC’s application is granted, and Terraform and Kwon are hereby ordered to comply with the above-referenced subpoenas.”
The SEC served the subpoenas to Kwon during the Messari Mainnet crypto conference in New York last October. Mirror Protocol, a platform for creating synthetic crypto-versions of prominent stocks like Netflix, Apple, and PayPal, is the target of the SEC.
The Mirror Protocol is a decentralized finance (DeFi) platform that enables users to produce and trade “mirrored assets,” or mAssets, that “mirror” stock prices, including major stocks listed on US exchanges.
The Terra CEO remarked about the crypto regulatory landscape shortly after Kwon sued the SEC for receiving the subpoena in public.
Kwon said tension between regulators and the crypto industry generally leads to “frameworks that are a little bit more accepting of innovation and change” at the Yahoo Finance All Markets Summit in October.
He went on to say that the conflict between regulators and the DeFi space is a global trend, with the United States being no exception.