As part of an SEC investigation into Terraform Labs, the Second Circuit on Wednesday ordered Terraform Labs and CEO Do Kwon to cooperate with subpoenaed documents.
The SEC, Terraform, and Kwon did not immediately comment on the Second Circuit’s ruling.
Notably, the Second Circuit panel is comprised of judges Rosemary S. Pooler, Richard C. Wesley, and Myrna Pérez.
The SEC is investigating whether Terraform and Kwon were marketing unregistered securities using the Mirror Protocol, which allows users to exchange crypto tokens that mirror big equities like Apple and Amazon.
Documents from the regulator were presented to Kwon at Messari’s 2021 Mainnet crypto conference in New York in September of 2014.
Kwon and Terraform appealed, arguing that the SEC violated its own procedures once it served Kwon in person and that the court lacked jurisdiction since Terraform had no presence in the United States.