Bankruptcy judge signs off on order allowing Terraform Labs to subpoena FTX entities By Cointelegraph

© Reuters.

A judge in the bankruptcy case for defunct crypto exchange FTX has issued an order allowing Terraform Labs to subpoena information that could be used in its case brought by the United States Securities and Exchange Commission.

In a July 31 filing in the U.S. Bankruptcy Court for the District of Delaware, Judge John Dorsey said Terraform Labs was permitted to serve FTX Trading and FTX US with subpoenas aimed at gathering evidence the firm could use in its defense from allegations of fraud by the SEC. The crypto firm claimed in a July 19 filing that the failures of its algorithmic stablecoin and governance token were the result of a coordinated attack from short-sellers, potentially involving Alameda Research.

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