Terraform Labs and SEC agree to confidential filings ahead of civil trial
The SEC charged Terraform Labs and its co-founder Do Kwon with allegedly “orchestrating a multi-billion dollar crypto asset securities fraud” in February.
A federal judge overseeing the civil case between the United States Securities and Exchange Commission (SEC) and Terraform Labs has signed off on a protective order keeping material confidential ahead of trial.
In a Dec. 20 filing in U.S. District Court for the Southern District of New York, Judge Jed Rakoff said the SEC and Terraform Labs had agreed to terms approved by the court, which requires parties to largely not disclose materials marked as confidential. All discovery filings marked as confidential will also be sealed by the court before the trial; at this point, the judge said it was “unlikely” he would approve requests to seal.
The order did not specifically cite the reason for the confidential filings other than Judge Rakoff’s finding “good cause.” Lawyers representing the SEC and Terraform Labs and its co-founder Do Kwon agreed to the order on Dec. 18. Kwon is currently in custody in Montenegro while awaiting extradition to the U.S. or South Korea.
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