Terraform Labs loses its appeal against an SEC subpoena in the United States

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The SEC's (SEC) service of Terraform Labs CEO Do Kwon at the Mainnet Conference last year in New York was legal, and the company must assist with the commission's inquiry, according to the Court of Appeals for the Second Circuit.

- Kwon and Terraform Labs, the firm behind the Terra blockchain, challenged the subpoena's legitimacy, but failed in February and filed an appeal.

- The court determined that the SEC followed its own regulations for delivering subpoenas, and that Terraform Labs' counsel was not authorized to receive subpoenas.

- The court also agreed that Kwon and Terraform Labs have sufficient ties to the United States because the company had employees in the nation and has previously said that 15% of its Mirror Protocol customers are based there.

- This case has nothing to do with the Terra ecosystem's recent collapse. It also has nothing to do with South Korean authorities' criminal probe into Kwon and Terraform Labs.

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