Terra Lawsuit Latest: Will Do Kwon’s Trial be Affected by Extradition Delay?
Do Kwon, co-founder of Terraform Labs, is currently facing potential delays in his extradition from Montenegro, which could impact his presence at the upcoming civil trial in the United States against the US Securities and Exchange Commission (SEC). The trial is scheduled to begin on March 25, 2024.
Montenegro’s court recently ruled to extradite Kwon to the United States instead of his preferred destination, South Korea. However, Kwon is appealing this decision, arguing that the lower court had incorrect information about the timing of the extradition requests. Kwon’s lawyer, David Patton, expressed confidence in a letter filed in federal court, stating that he does not expect Kwon to be extradited before the end of March. This suggests that Kwon may miss at least the start of his legal battle against the SEC.
Despite these extradition complications, Kwon and his lawyer Patton are committed to not seeking an adjournment for the trial scheduled on March 25, 2024. Kwon and Terraform Labs have been involved in legal proceedings initiated by the SEC since February of last year. The SEC alleges that TerraUSD and Luna cryptocurrencies, associated with Terraform Labs, collapsed in May 2022, resulting in significant losses of approximately $40 billion in the crypto markets.
The SEC claims that Kwon and Terraform Labs deceived investors about the stability of TerraUSD, a stablecoin designed to maintain a constant $1 price. The commission also argues that misinformation was provided about how a popular Korean mobile payment app utilized the Terraform blockchain for transaction settlements. However, Kwon strongly denies any wrongdoing and maintains his innocence.
In addition to the SEC charges, Kwon also faces criminal charges in the United States. His extended detention in Montenegro, since his arrest in March 2023, has been marked by ongoing disputes over the potential extradition country, with both the United States and South Korea seeking his return.
As Kwon prepares for extradition to the US, the crucial question remains whether he will miss the start of his SEC trial. With the trial date approaching on March 25, the crypto community awaits the hearing of this high-profile, white-collar crime case.