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Do Kwon and his lawyers have failed to prevent the U.S. Securities and Exchange Commission (SEC) from accessing Terraform Labs' records in Singapore.
The SEC filed a lawsuit against Do Kwon and Terraform Labs in February for crimes including fraud and selling unregistered securities.
Earlier this month, the LUNA founder's lawyers claimed that the SEC was operating outside its jurisdiction. Court filings with the US Supreme Court point to the fact that Terraform Labs is a Singaporean company, and that Do Kwon is a Singapore resident.
It further adds that Terraform Labs operates globally, not specifically in the US.
“Kwon is the CEO of Terraform, an open-source software development company with limited contact with the U.S. Most of the company’s business is essentially global, and it’s not specifically aimed at the United States," the filing reads. Lawyers had requested an extension of the appeal filing.
Read more: Do Kwon's Lawyers Slam SEC, Claim Terraform is Singaporean
At a hearing on Friday, U.S. District Judge Jed Rakoff denied the firm's request for the SEC to withdraw its request for documents in the Monetary Authority of Singapore's (MAS) possession.
It is unclear which records exactly the SEC is seeking but its pursuit is believed to strengthen its case against Do Kwon.
Do Kwon was arrested last month in Montenegro after allegedly travelling under a false name with fake documents.
Montenegro interior minister Filip Adzic announced the news Do Kwon's arrest on Twitter, stating that "one of the world's most wanted fugitives" had been detained at the capital's Podgorica airport.
Read more: Do Kwon Arrested in Montenegro, Faces US Criminal Fraud Charges
SEC loses
The SEC and the crypto industry have been at loggerheads. Taking on the likes of SushiSwap, Coinbase, Ethereum, and Justin Sun, and even battling the CFTC over crypto-related issues, the SEC is strengthening its presence in the web3 world.
In the most recent chapter of the SEC's crypto battle, the agency has classified six cryptocurrencies as cryptocurrencies: OMG Network (OMG), Dash (DASH), Monolith (TKN), Naga (NGC), Real Estate Protocol (IHT), and Algorand (ALGO).
Its decision comes amid its lawsuit against crypto exchange Bittrex, which the SEC claims failed to register as an exchange or clearing agency. For the accusation to carry weight legally, at least one of the tokens listed on Bittrex needed to be a security.
ALGO is the largest token on the list in terms of market cap, with a total value of around $1.6 billion.
Read more: SEC Declares Algorand a Security, Gensler Gets Rekt For Previously Shilling it
However, soon after the SEC's decision, crypto Twitter was quick to unearth footage of SEC Chair Gary Gensler previously promoting Algorand, describing the network as "great technology" that could support other tech firms such as Uber.
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