Terra co-founder Do Kwon finds himself under legal scrutiny once again, this time reportedly hiring the world’s largest law firm Dentons to represent him in dealing with US federal prosecutors. This is not the first time Do Kwon has turned to Dentons for legal defence, as he has used the firm in the past to challenge subpoenas and lawsuits.
In this latest development, Do Kwon is facing a passport forgery case in Montenegro. His bail was revoked by the court after prosecutors highlighted flight risk concerns and challenged the bail amount for house arrest. With talks of extradition on the rise, Do Kwon has employed Dentons to represent him in various US lawsuits and investigations. The firm has previously represented him in challenging the US SEC subpoena related to the investigation of Mirror Protocol in 2021 and a class-action lawsuit in the Singapore High Court in 2022. Dentons also represents Terra in other legal matters.
The reason behind the legal actions against Do Kwon and Terraform Labs stems from accusations by the US Securities and Exchange Commission (SEC) of fraud and the sale of unregistered securities. In light of these allegations, the U.S. District Attorney’s Office for the Southern District of New York indicted Do Kwon on eight charges earlier this year, including securities fraud, wire fraud, commodities fraud, and conspiracy.
Despite the mounting legal challenges, Terra’s leadership appears to be fully prepared to contest these allegations. As co-founder Daniel Shin is set to face his first trial in the Seoul Southern District Court, he has reportedly hired a team of 30 lawyers to mount his defence, including a prosecutor who investigated the Terra-LUNA crises in the past. This robust legal backing suggests that both co-founders are taking the charges very seriously and are well-prepared for the battles to come.
The ongoing case against Terra and its co-founders marks yet another instance of the growing scrutiny and regulation surrounding the cryptocurrency industry. As more countries begin to acknowledge the legitimacy of digital assets, the demand for clear-cut rules and regulations will only increase. While proponents of cryptocurrencies argue that increasing regulation will help prevent fraud and ensure that investors are protected, critics claim that excessive regulation could stifle innovation and limit the full potential of blockchain technology.
In conclusion, the legal actions against Terra co-founder Do Kwon and his decision to hire Dentons underscore the complex regulatory landscape currently faced by the cryptocurrency sector. As regulators continue to crack down on alleged wrongdoing and introduce new laws, it remains to be seen whether increased regulatory oversight will ultimately benefit or hinder the growth of blockchain technology and the broader digital asset market.