Judge Rakoff's Decisive Move: Key Order Unveiled In SEC

In the most recent update regarding the legal action by the U.S. Securities and Exchange Commission (SEC) against Terraform Labs and Do Kwon, co-founder of Terra, the court has issued a protective order to regulate the pre-trial proceedings in the case.

However, As Do Kwon undergoes extradition proceedings in Montenegro, Terra’s legal team seeks the dismissal of the lawsuit, asserting that the U.S. Securities and Exchange Commission (SEC) actions constitute overreach and that the regulatory body has failed to demonstrate the company’s offering as unregistered securities.

Judge Jed Rakoff has approved a protective order to maintain confidentiality in the U.S. SEC lawsuit involving Terra and Do Kwon, as indicated in the most recent filing within the Southern District of New York.

Everyone, including the parties, their agents, experts, and consultants, must follow the order. This also applies to any third parties who may have received discovery or notice. Anyone revealing private records will be held in contempt of court.

Secrecy Unveiled: Navigating Confidentiality In Legal Battles

This relates to confidential discovery documents, such as secret financial information, ownership information about the company, business plans, product specifics, whistleblower names, and software. Seal all private discovery materials by filing under seal.

The protection order must be in place once the lawsuit is over, per the court’s rule. Return or destroy confidential materials within 30 days of the last deposition. The SEC can store some papers to meet its record-keeping needs.

Previously, the court granted permission to receive confidential discovery documents from Jump Crypto in a sealed manner. Nevertheless, the court cautioned that it retains the discretion to disclose any personal information submitted during subsequent motion practice or trial.

Delaying the extradition of Do Kwon to either the U.S. or South Korea, a Montenegro appeals court overturned a previous high court ruling. Following this development, Terra ecosystem tokens experienced a notable increase.

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