A U.S. judge has approved an order requiring Genesis Global entities to produce certain documents in accordance with a subpoena requested by Terraform Labs.
In an Oct. 13 filing in the United States District Court for the Southern District of New York, Judge Jed Rakoff saying Genesis would have 5 days, likely until October 18, to produce documents following a subpoena from Terraform. According to the filing, Genesis did not provide records before October 9 as required by a September 12 subpoena, although the order was unclear as to what documents the crypto company was seeking.
The order was part of the U.S. Securities and Exchange Commission's (SEC) civil case against Terraform and its co-founder and CEO. make kwon first presented in February. Kwon is currently serving a four-month prison sentence in Montenegro for using falsified travel documents while the lawsuit against Terra continues in the United States.
US regulators have alleged that Terra and Kwon โmisled and misled investorsโ with claims about their Terra USD (UST) algorithmic stablecoin. The collapse of Terraform Labs was one of the events that precipitated the 2022 crypto market crash, before the bankruptcies of FTX, BlockFi, Celsius Network, Voyager Digital and others.
Genesis went bankrupt in January, estimating its liabilities at approximately $1 billion with $10 billion in assets at the time. Both the company and the Gemini cryptocurrency exchange have been the objectives of a civil lawsuit filed by the U.S. Securities and Exchange Commission in January. The regulator alleged that the companies offered unregistered securities through Gemini's Earn program.
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