Impossible To Extradite Do Kwon To The US: Terraforms Labs’ Lawyers

• A court filing revealed Terraform Lab’s legal team stated that it would be impossible to extradite Do Kwon to the US.
• The attorneys stated that Kwon and Terraform co-founder Daniel Shin were in discussions about staking LUNA tokens with validators.
• Reports have highlighted a substantial surge in short liquidations for LUNC, surpassing the $20,000 mark today.

A court filing by Terraform Labs’ legal defense team from September 27 has surprised the community as the lawyers claimed that “it would be impossible for Mr. Kwon” to be extradited to the United States. The U.S. Securities and Exchange Commission (SEC) plans to bring Kwon, Terraform Labs’ ex-CEO, to the United States for a deposition before October 13th. If the SEC’s efforts are fruitful, Kwon will offer testimony in the securities lawsuit. The filing further highlighted.

That request violates the Court’s Individual Rules of Practice because the SEC did not obtain the Court’s permission to seek a preclusion order in the parties’ pre-motion call to Chambers. Moreover, the SEC’s request for a preclusion order is not ripe because neither party has filed a summary judgment motion and the deadline for summary judgment motions is a month away.

Moreover, the defense attorneys have requested the court to deny the SEC’s alternative relief request. If this request is granted, it would prevent Terraform Labs from presenting a statement from Kwon during the summary judgment process. The lawyers argued that the SEC had not previously sought permission to secure such an order, as well as no summary judgment motion had been filed despite an approaching deadline.

The attorneys also stated that the SEC has inaccurately presented evidence “in its gratuitous effort to prejudice Mr. Kwon.” The document stressed that SEC asserted a chat to prove how Kwon planned to use the Seoul-based payment platform Chai to create fake transactions on the Terra blockchain. However, the chat actually revealed Kwon and Terraform co-founder Daniel Shin “discussing the possibility of staking LUNA tokens to validators and generating transactions between LUNA wallets”

Meanwhile, Bitcoin trader WSB Trader Rocko tweeted that LUNA’s price has recently surged.

Reports noted a significant increase in short liquidations for LUNC, exceeding $20,000 today. Additionally, the Open Interest for LUNC has risen by $1 million, signaling increased trading activity. However, with the long-short ratio dropping to 0.67, it suggests a potential bearish correction on the horizon.