TerraForm Labs is authorized to summon FTX regarding the Terra/Luna short-selling issue

ChainCatcher news, a federal judge has allowed Terraform Labs to issue a subpoena to the bankrupt cryptocurrency giant FTX. The subpoena aims to request relevant evidence from FTX to overturn some of the allegations made by the U.S. Securities and Exchange Commission against Terraform and its founder Do Kwon.

Previous news, Terraform claimed that FTX holds information related to its defense against the U.S. Securities and Exchange Commission's enforcement actions, as it believes that coordinated short-selling of its tokens led to their collapse in May 2022.

Currently, FTX has agreed to provide the requested records, as long as those records are limited to Terraform's defense against the U.S. Securities and Exchange Commission case.