Logo
  • News
  • Prices
  • Data
  • Indices
  • Research
  • Events
  • Sponsored
  • Sign In
  • Sign Up
BTC logo
BTC
$116,783.03
1.88%
ETH logo
ETH
$3,899.33
6.53%
XRP logo
XRP
$3.3411
12.12%
USDT logo
USDT
$1.0001
0.01%
BNB logo
BNB
$784.85
2.15%
SOL logo
SOL
$175.05
4.74%
USDC logo
USDC
$0.9998
0.02%
DOGE logo
DOGE
$0.2220
9.22%
TRX logo
TRX
$0.3371
0.40%
ADA logo
ADA
$0.7904
7.38%
XLM logo
XLM
$0.4559
14.95%
HYPE logo
HYPE
$40.98
7.95%
SUI logo
SUI
$3.7697
8.97%
LINK logo
LINK
$18.77
12.75%
BCH logo
BCH
$576.23
1.08%
HBAR logo
HBAR
$0.2631
8.46%
AVAX logo
AVAX
$23.27
5.65%
USDE logo
USDE
$1.0006
0.02%
WBT logo
WBT
$43.77
2.48%
LTC logo
LTC
$122.00
1.38%
BTC logo
BTC
$116,783.03
1.88%
ETH logo
ETH
$3,899.33
6.53%
XRP logo
XRP
$3.3411
12.12%
USDT logo
USDT
$1.0001
0.01%
BNB logo
BNB
$784.85
2.15%
SOL logo
SOL
$175.05
4.74%
USDC logo
USDC
$0.9998
0.02%
DOGE logo
DOGE
$0.2220
9.22%
TRX logo
TRX
$0.3371
0.40%
ADA logo
ADA
$0.7904
7.38%
XLM logo
XLM
$0.4559
14.95%
HYPE logo
HYPE
$40.98
7.95%
SUI logo
SUI
$3.7697
8.97%
LINK logo
LINK
$18.77
12.75%
BCH logo
BCH
$576.23
1.08%
HBAR logo
HBAR
$0.2631
8.46%
AVAX logo
AVAX
$23.27
5.65%
USDE logo
USDE
$1.0006
0.02%
WBT logo
WBT
$43.77
2.48%
LTC logo
LTC
$122.00
1.38%
Ad
Policy
Share this article
X iconX (Twitter)LinkedInFacebookEmail

Terra's Do Kwon Wants SEC Charges Dismissed, Court Filings Show

The SEC cannot regulate digital assets involved in the case because the UST stablecoin is a currency, not a security, lawyers for Kwon have said.

By Sandali Handagama
Updated Apr 24, 2023, 7:37 p.m. Published Apr 24, 2023, 10:59 a.m.
jwp-player-placeholder

Lawyers for Do Kwon, founder of collapsed crypto issuer Terraform Labs, have requested a U.S. court to dismiss charges brought against him by the Securities and Exchange Commission partly because of the lack of jurisdiction, court filings from Friday show.

Kwon, who has been on the run from regulators since the collapse of his multibillion-dollar crypto enterprise in May 2022, was arrested in Montenegro last month for attempting to travel with falsified documents. Following his arrest, the SEC charged the South Korean national with securities fraud.

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the State of Crypto Newsletter today. See all newsletters
By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.

In its civil lawsuit against Kwon, the SEC failed to prove "personal jurisdiction" as products referenced by the regulator were "available to the world and not directed at U.S. persons," a 47-page supporting document for a motion to dismiss the charges said. It also says that a digital asset involved in the case, the stablecoin UST, doesn't fall under the purview of the SEC because it is a currency and not a security.

"Congress has not granted the SEC the power to regulate the digital assets at issue here," the document filed with a U.S. district court in New York said.

The company also didn't conduct any public offerings of securities that warranted an SEC registration, according to Kwon's representatives. SEC Chairman Gary Gensler has been facing mounting criticism for regulating crypto through enforcement actions.

Kwon still faces criminal fraud charges from U.S. prosecutors as well as charges of capital-markets law violations in South Korea. Both countries have requested the extradition of the former executive who must first face trial in Montenegro.

The SEC can oppose the motion to dismiss by May 12.

Read more: Do Kwon Now Faces Criminal Fraud Charges From U.S. Prosecutors

TerraUSTDo KwonSECLawsuit
Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali

X icon
CoinDesk News Image

More For You

Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access

By Sam Reynolds|Edited by Parikshit Mishra
Jul 24, 2025
JPMorgan CEO Jamie Dimon

A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.

What to know:

  • Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
  • JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
  • The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
Read full story
Latest Crypto News
Breaking News

[Test LCN] Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

19 hours ago
Breaking News

[Test Today label] Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

19 hours ago
FastNews (CoinDesk)

[Test Fast News] Industry-Funded Polls Back Crypto Message: They Have Enough Voters to Make a Splash

Aug 6, 2025
Breaking News

[Test Breaking News] Crypto Cash Fueled 53 Members of the Next U.S. Congress

Aug 6, 2025
Breaking News

[Test one more time; LCN block] DUPLICATE

Aug 5, 2025
Breaking News

[Test one more time; LCN block]

Aug 5, 2025
Top Stories
JPMorgan Chase CEO Jamie Dimon (Photo by Kevin Dietsch/Getty Images)

JPMorgan To Allow Clients To Buy Bitcoin, Says Jamie Dimon blah blah blah blah blah blah blah blah blah

May 19, 2025
Consensus 2025: Anthony Scaramucci, Founder, SkyBridge Capital

Scaramucci Says Bitcoin Treasury Trend Will Fade Despite Saylor’s Success

Jul 2, 2025
A barman shakes a cocktail shaker with an array of drinks bottles behind him.

Crypto Daybook Americas: Bitcoin Whiplash Shakes Market as U.S. Yield Spike Threatens Bull Run

May 19, 2025
Tokyo, Japan (Jaison Lin/Unsplash)

Metaplanet Buys Another 1,004 Bitcoin, Lifts Holdings to Over $800M Worth of BTC

May 19, 2025
Protocol Village is CoinDesk's living column chronicling blockchain tech project updates (CoinDesk)

Protocol Village: Starknet Claims to Shatter Transaction Speed Record Among Ethereum Layer-2 Networks

Oct 30, 2024
A breakdown of how well the Fairshake PAC did with candidates it backed.

Crypto Cash Fueled 53 Members of the Next U.S. Congress

Dec 3, 2024

Only 1 article remaining this month.

Sign up for free

About

  • About Us
  • Masthead
  • Careers
  • CoinDesk News
  • Crypto API Documentation
  • Blog

Contact

  • Contact Us
  • Accessibility
  • Advertise
  • Sitemap
  • System Status
Disclosure & Polices
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.
EthicsPrivacyTerms of UseCookie SettingsDo Not Sell My Info

© 2025 CoinDesk, Inc.
X icon
Sign Up
  • News
    Back to menu
    News
    • Markets
    • Finance
    • Tech
    • Policy
    • Focus
  • Prices
    Back to menu
    Prices
    • Data
      Back to menu
      Data
      • Trade Data
      • Derivatives
      • Order Book Data
      • On-Chain Data
      • API
      • Research & Insights
      • Data Catalogue
      • AI & Machine Learning
    • Indices
      Back to menu
      Indices
      • Multi-Asset Indices
      • Reference Rates
      • Strategies and Services
      • API
      • Insights & Announcements
      • Documentation & Governance
    • Research
      Back to menu
      Research
      • Events
        Back to menu
        Events
        • CoinDesk: Policy & Regulation
        • Consensus Hong Kong
        • Consensus Miami
      • Sponsored
        Back to menu
        Sponsored
        • Thought Leadership
        • Press Releases
        • CoinW
        • MEXC
        • Phemex
        • Advertise
      • Videos
        Back to menu
        Videos
        • CoinDesk Daily
        • Shorts
        • Editor's Picks
      • Podcasts
        Back to menu
        Podcasts
        • CoinDesk Podcast Network
        • Markets Daily
        • Gen C
        • Unchained with Laura Shin
        • The Mining Pod
      • Newsletters
        Back to menu
        Newsletters
        • The Node
        • Crypto Daybook Americas
        • State of Crypto
        • Crypto Long & Short
        • Crypto for Advisors
      • Webinars
        Back to menu
        Webinars
        Select Language
        English enEspañol esFilipino filFrançais frItaliano itPortuguês pt-brРусский ruУкраїнська ukDeutsch deNederlands nl한국어 ko中文 zh