Lawyers for Do Kwon, founder of collapsed crypto issuer Terraform Labs, have requested a U.S. court to dismiss charges brought against him by the Securities and Exchange Commission (SEC) partly for lack of jurisdiction. The SEC charged Kwon with securities fraud after his arrest in Montenegro for attempting to travel with falsified documents. In the civil action brought against Kwon, the regulator failed to prove "personal jurisdiction" as products referenced by the SEC were "available to the world and not directed at U.S. persons," and a digital asset involved in the case, the stablecoin UST, does not fall under the purview of the SEC as it is a currency and not a security. Kwon still faces criminal fraud charges by the U.S. prosecutors as well as charges of capital markets law violations in South Korea.

(By Sandali Handagama)