Terra Founder Do Kwon’s SEC Trial to Start Without Him Due To Extradition Delay

The upcoming trial of cryptocurrency entrepreneur Do Kwon, co-founder of Terraform Labs, is poised to commence on March 25th, embroiled in a complex web of legal intricacies and extradition delays. 

Kwon, facing charges from the U.S. Securities and Exchange Commission (SEC) over alleged fraud, is expected to miss the trial’s outset due to the prolonged process of extradition from Montenegro, as revealed by his legal representatives.

Legal Battle and Extradition Delays

Kwon’s legal counsel, David Patton, conveyed in a letter to the federal court in Manhattan that regardless of the extradition timeline, Kwon won’t seek an adjournment of the trial date, according to Reuters. 

This revelation comes amidst the backdrop of a protracted extradition battle involving requests from both the United States and Kwon’s native South Korea.

Montenegro, where Kwon has been detained since his arrest in March last year, has been the epicenter of this legal tussle. 

Despite recent court rulings favoring extradition to the U.S., Kwon and his legal team are vehemently contesting this decision, citing purported inaccuracies in the sequence of extradition requests.

Related: Terraform Labs CEO Do Kwon Faces Allegations of Violating US Securities Law

Allegations and Denials

The SEC’s lawsuit, filed in February 2023, alleges Kwon and Terraform Labs’ complicity in the collapse of the TerraUSD (UST) and Luna (LUNA) cryptocurrencies in May 2022, causing substantial losses in crypto markets. 

In February 2023, Kwon was alleged to have involvement in the May 2022 collapse of the TerraUSD (UST) and Luna (LUNA) cryptocurrencies, roughly causing $40 billion in losses in the crypto markets.

The regulatory body accuses the defendants of deceiving investors regarding the stability of UST and the utilization of the Terraform blockchain in transaction settlements.

In response, Kwon has steadfastly denied any wrongdoing, maintaining his innocence despite facing concurrent criminal charges in the United States. 

The legal quagmire has further intensified with Kwon’s preference for extradition to South Korea, a stance contradicted by recent extradition rulings favoring the U.S.

The impending trial holds significant implications for both Kwon and the cryptocurrency industry at large. 

This legal battle shows the regulatory challenges confronting the burgeoning crypto sector, particularly concerning investor protection and regulatory compliance.

Meanwhile, the intricacies of international extradition law and the evolving nature of cryptocurrency regulation add layers of complexity to Kwon’s legal predicament. 

Check Also: Terraform Labs Files for Chapter 11 Bankruptcy Amid Legal Battles