Do Kwon’s Extradition Requests Lead to March Trial in SEC’s Case
The U.S. Securities and Exchange Commission’s (SEC) case against Terraform Labs and its co-founder, Do Kwon, has been postponed, Reuters reported on Tuesday.
The news comes days after a federal judge refused multiple motions to reconsider earlier orders. The delay of the civil trial will allow the authorities to extradite Kwon from Montenegro. The trial will reportedly take place in March.
The hearing was originally set for January 29 but Kwon’s presence was uncertain. The securities regulator called for a “modest” adjournment due to the circumstances, as quoted by Reuters.
This came after Kwon’s legal representation indicated his willingness to attend the trial and agreed to extradition.
SEC ready to wait
The SEC has also argued against holding separate trials for Terraform Labs and Kwon, citing the similarity of the cases. The agency reportedly proposed April 15 as the new trial date to accommodate scheduling conflicts, while Kwon’s lawyer agreed not to seek further delays beyond March 18.
This case revolves around the collapse of TerraUSD, a stablecoin pegged to maintain a 1:1 ratio with the US dollar. The Terra Luna collapse due to a de-peg caused a significant loss in value, with an estimated $40 billion wiped out from investors in 2022.
The SEC has charged Terraform Labs and its co-founder Do Kwon with giving investors false information about the stability of their digital currency.
Community member alleges detention
Kwon is facing criminal charges in the United States, and South Korea has also requested his extradition. Recently, U.S. District Judge Jed S. Rakoff ruled in favor of the SEC, dismissing attempts by Terraform Labs and Kwon to have the case reconsidered.
In a related development, a crypto commentator and member of the Terra Research Forum known as FatMan has claimed on X that the co-founder’s U.S. legal team is trying to prevent the jury from knowing about his current detention in Montenegro.
According to FatMan, Kwon was arrested for allegedly using fake documents in an attempt to flee. He also criticized the legal team’s efforts to downplay Kwon’s inability to participate in the trial.
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