Federal judge gives Genesis 5 days to comply with Terraform Labs subpoena
A United States 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 U.S. District Court the Southern District of New York, Judge Jed Rakoff said Genesis would have 5 days — likely until Oct. 18 — to produce documents following a subpoena from Terraform. According to the filing, Genesis failed to provide records by Oct. 9 as was required by an Sept. 12 subpoena, though the order was unclear as to what documents the crypto firm was seeking.
The order was part of the U.S. Securities and Exchange Commission’s (SEC) civil case against Terraform and co-founder and CEO Do Kwon first filed 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.
Related: Terraform Labs contends Citadel Securities had a hand in its stablecoin collapse
U.S. regulators have alleged Terra and Kwon “misled and deceived investors” with claims about its algorithmic stablecoin Terra USD (UST). The collapse of Terraform Labs was one of the precipitating events in the crypto market crash of 2022, prior to the bankruptcies of FTX, BlockFi, Celsius Network, Voyager Digital, and others.
Genesis filed for bankruptcy protection in January, estimating its liabilities to be roughly $1 billion with $10 billion in assets at the time. Both the firm and cryptocurrency exchange Gemini have been the targets of a civil suit filed by the U.S. Securities and Exchange Commission in January. The regulator alleged the companies offered unregistered securities through Gemini’s Earn program.
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