Update on Terra Lawsuit: Do Kwon’s Extradition Status Raises Concerns about Missing SEC Trial Date
Co-founder of Terraform Labs, Do Kwon, is currently facing potential setbacks in the extradition process from Montenegro. This situation has raised concerns about his presence at the upcoming civil trial in the USA against the US Securities and Exchange Commission (SEC), which is scheduled to begin on March 25, 2024.
Extradition Complications and Delay
The court of Montenegro recently ruled to extradite Do Kwon to the United States instead of his preferred destination, South Korea. However, Kwon is currently appealing this decision, arguing that the lower court’s ruling was based on incorrect information regarding the timing of the extradition requests.
In a letter submitted to the federal court, Kwon’s lawyer, David Patton, confidently stated, “I do not expect Mr. Kwon to be extradited anywhere before the end of March.” This statement indicates that there is a high likelihood of Kwon missing at least the beginning of his legal battle against the SEC, if not the entire initial phase.
Despite these complications, Kwon, along with his lawyer Patton, remains determined not to seek an adjournment for the trial, which is scheduled to commence on March 25, 2024.
The Legal Tension Looming Around
Kwon and his company, Terraform Labs, have been involved in legal proceedings initiated by the SEC since February of last year. The SEC alleges that the collapse of TerraUSD and Luna cryptocurrencies, associated with Terraform Labs, in May 2022, resulted in significant losses of approximately $40 billion in the crypto markets.
The SEC claims that Kwon and Terraform Labs deceived investors regarding the stability of TerraUSD, a stablecoin designed to maintain a constant $1 price. Additionally, the commission argues that misinformation was provided about how a popular Korean mobile payment app utilized the Terraform blockchain for transaction settlements.
Like any accused individual, Kwon vehemently denies any wrongdoing.
However, what is particularly surprising is that Kwon also faces criminal charges in the United States, in addition to the SEC charges. Since his arrest in March 2023, his prolonged detention in Montenegro has been marked by ongoing disputes over the country to which he should be extradited, with both the United States and South Korea seeking his return.
As Do Kwon prepares to be extradited to the US, the pressing question remains whether he will miss the start of his SEC trial. With the trial date of March 25 fast approaching, the crypto community eagerly awaits the hearing of this high-profile, white-collar crime case.
Tags
Crypto Regulations