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Do Kwon, the co-founder of Terraform Labs, is anticipated to miss the commencement of his trial with the US Securities and Exchange Commission (SEC) regarding fraud allegations due to delays in his extradition from Montenegro. The trial, originally scheduled to start last month, has been rescheduled to March 25 at Kwon’s request.
The SEC initiated a lawsuit against Terraform Labs and its founders in February 2023, alleging their involvement in the collapse of the TerraUSD (UST) and Luna (LUNA) cryptocurrencies in May 2022. Authorities estimate that this incident resulted in approximately $40 billion in losses across the cryptocurrency markets.
Do Kwon Not Seeking Postponement of Trial Date
Kwon’s attorney, David Patton, submitted a letter to the federal court in Manhattan indicating that Kwon would not seek a delay of the trial date, irrespective of when the extradition process is completed, as reported by Reuters.
The SEC contends that Terraform Labs and Kwon deceived investors about the stability of UST, a stablecoin intended to maintain a steady $1 value.
Furthermore, the lawsuit alleges misrepresentation regarding the use of the Terraform blockchain for transaction settlements by a widely used Korean mobile payment application.
The Terra founder asserts his innocence and is facing separate criminal charges in the U.S. He has been held in Montenegro since his arrest in March 2023.
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Do Kwon Extradited to US over South Korea
As previously reported, a court in Podgorica, Montenegro, decided in favor of extraditing Kwon to the United States, overriding his preference for extradition to his home country of South Korea.
Nonetheless, the Terra founder is appealing this decision, with his local attorney Goran Rodic asserting that it was based on “inaccurate information” regarding the order of extradition requests.
Kwon’s lawyer had previously stated that according to the constitution, Kwon should be extradited to South Korea rather than the USA.
In a statement attached to Patton’s letter, Rodic expressed his belief that Kwon’s extradition would not take place before the end of March due to “unforeseen errors” that occurred during the Montenegrin court proceedings.
Earlier, in December 2023, U.S. District Judge Jed Rakoff, who is overseeing the SEC case, determined that Terraform Labs and its founder had breached U.S. law by failing to register UST and LUNA.
The post Terra Founder Do Kwon’s SEC Trial to Start Without Him Amid Extradition Delay appeared first on Cryptonews.
