Terraform’s Do Kwon Unlikely in the US for March SEC Trial

As per the recent court filings, the co-founder of Terraform Labs, Do Kwon, may not arrive in the United States in time for the trial with the Securities and Exchange Commission (SEC). Kwon’s legal representatives have concerns regarding the postponement of the extradition process from Montenegro, where Kwon has been detained since March 2023. Although prompt extradition is anticipated, unexpected difficulties have cropped up that might affect Kwon’s appearance during the March 25, 2024, trial.

David Patton, who represents Do Kwon in the United States, stated that the extradition process is obstructed by “unforeseen mistakes.” As a result, there is a possibility of a delay that exceeds by the end of March. The legal team has advised the U.S. District Court for the Southern District of New York of the situation, adding that they do not propose to apply for an adjournment of the trial date even if Kwon misses the trial’s start.

Extradition Complications and Legal Challenges

According to Goran Rodic Kwon’s legal representative, the legal processes in Montenegro have faced issues. A ruling by the High Court of Montenegro on February 21 in favor of the extradition of Kwon to the U.S. was challenged by Rodic, asserting that it was made on the wrong information concerning the order of filing for extradition by the U.S. and South Korea. This has resulted in an appeal of the decision, with Rodic pointing out legal failings in the court’s judgment.

Moreover, the extradition procedure is complicated because Do Kwon was detained in Montenegro using false documents, which makes the situation quite legal. The extended legal fight in Montenegro indicates the U.S.-South Korea tug-of-war regarding Kwon’s extradition, with the U.S. set to prevail. Nevertheless, delays in the legal process suggest that Kwon will not be at the SEC trial in March.

Legal Proceedings Against Do Kwon and Terraform

Kwon is now the target of major legal litigation, as evidenced by the lawsuit filed by the SEC against him and Terraform in February 2023 and the criminal charges brought by the U.S. Attorney’s Office in March 2023. The charges, which comprise eight criminal counts, allege Kwon and Terraform’s fraud of a great magnitude concerning the crypto asset securities, particularly to the offering of TerraUSD (UST) and Terra. After the collapse of Terra in May 2022, extensive investigations had to be undertaken that ended up with these legal actions.

Judge Jed Rakoff, overseeing the civil case, ruled in favor of the SEC in December 2023, regarding Terraform’s alleged offering of unregistered securities. This summary judgment sets the stage for the trial to commence on March 25, which has already been delayed to accommodate Kwon’s participation potentially. The trial’s timing coincides with another high-profile case involving former U.S. President Donald Trump in the same court district.

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