Lawyers for Terraform Labs co-founder Kwon Do-hyeong have reportedly called on a U.S. court to dismiss a regulator’s lawsuit accusing him of fraud related to last year’s 40 billion-dollar collapse of the company’s cryptocurrencies.

According to Bloomberg, the legal representatives for the disgraced South Korean businessman, widely known as Do Kwon, argued on Friday that the U.S. Securities and Exchange Commission exceeded its authority.

They contended that the U.S. law prohibits regulators “from using federal securities law to assert jurisdiction over the digital assets in this case” because the stable coin at issue, TerraUSD, is not a security but a currency.

Kwon, who was arrested in Montenegro and is facing forgery charges for possession of a fake passport, was also indicted by New York prosecutors in March on eight counts, including defrauding cryptocurrency investors.

While South Korean and U.S. authorities are simultaneously seeking to secure his extradition, Kwon is set to stand trial in Montenegro on May 11.