Terraform Labs and its CEO Do Kwon are now required to comply with the subpoenas issued by the US Securities and Exchange Commission, the New York District Court ruled Friday.
The ruling came two months after the protocol filed a response against US SEC’s lawsuit, claiming that the regulator has no jurisdiction over the Singapore-based entity.
“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,” wrote United States District Judge Paul Oetken in the court order.
The SEC had filed a lawsuit against Terraform and its founder and CEO Do Kwon after the company failed to respond to multiple subpoena requests it made. The financial regulator has been looking to investigate ‘Mirror Protocol’, a Terraform’s DeFi project that creates synthetic crypto-versions of popular real-world stocks.
LUNA, the native token of Terra blockchain, is currently trading at $49.64, down by 9% from yesterday and 50% from its ATH recorded in December last year.