Cryptocurrency Company Snared in SEC Dragnet Sues Regulator

Terraform Labs says federal subpoenas embarrassed firm, broke agency rules

A bitcoin mining facility in upstate New York is using electricity from a local hydroelectric plant powered by the Niagara River. The company is part of a group of miners attempting to make the industry more sustainable, both environmentally and financially. Illustration: Alex Kuzoian/WSJ
By
Dave Michaels

A cryptocurrency developer who was handed two subpoenas as he walked inside a hotel last month won’t comply with the demands—and is instead suing the federal regulator that issued them.

Do Kwon, a South Korean citizen and resident, says the move by the Securities and Exchange Commission violated the agency’s rules and was designed either to embarrass him or to stir up media interest in its crackdown on the cryptocurrency market.

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