Terraform Labs Statement in Response to SEC Litigation Release NO. 25262

November 12th, 2021

As has been widely reported, on October 22, 2021, Terraform Labs (“TFL”) (a Singapore private company) and our CEO, Do Kwon (a citizen of South Korea), filed a case in federal court in New York regarding two investigative subpoenas that the Securities & Exchange Commission issued and attempted to serve upon Do while he was attending the Messari Mainnet event in New York City on September 20, 2021. The principle basis for the complaint is that the subpoenas are invalid and unenforceable because the SEC failed to follow its own rule that requires a specific Commission order of authorization to serve an individual personally if he is represented by counsel, and in any event attempted service of a subpoena on Do could not suffice as service on TFL.

Despite the clear failure of the SEC to follow its own rules, the SEC today filed its own federal court proceeding seeking to compel compliance with the subpoenas. In its press release announcing its filing, the SEC does not address its failure to follow its own rules, and its filings do not deny that it failed to obtain a specific order authorizing service on Do.

Ultimately, the court will decide whether the SEC acted properly. We look forward to presenting our case to the court.