Former Terra CEO, and issuer of the stablecoin TerraUSD, Do Kwon, has asked a U.S. court to postpone his Securities and Exchange Commission (SEC). The request comes amid delays in his extradition proceedings from Montenegro. Kwon’s counsel has formally asked the court to delay the trial until his arrival, which is expected to be in February or March.
CRYPTO IN THE COURTS: Do Kwon Wants to Attend SEC Terraform Labs Trial So He Asks to Delay It to Mid March for Extradition – Inner City Press story: https://t.co/R3mq5kcsYs Full filing on Patreon here https://t.co/rQd294gK8k pic.twitter.com/3d525J8B4p
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The extradition process has encountered delays primarily due to successful appeals lodged by his counsel in Montenegro. In an initial ruling, the High Court of Montenegro sanctioned the extradition to either the United States or South Korea. However, due to identified procedural irregularities, the Appeals Court has mandated a retrial.
The trial is currently scheduled to commence at the end of January. If the court declines the postponement, Kwon’s counsel has requested that the jury be instructed not to view his absence as unduly prejudicial. In the ongoing legal conflict in the United States, both parties, Do Kwon and the SEC, have submitted requests for summary judgment.
Do Kwon Filed for Summary Judgment
Both parties have appealed to a federal judge for a ruling in their favor, bypassing the need for a trial. They contend that the adversary has not adequately supported their claims. This development introduces an additional level of intricacy to the legal process. The legal battle has prolonged the extradition, making Kwon’s arrival date uncertain.
In February of the previous year, the Securities and Exchange Commission (SEC) brought charges against Terraform Labs and its former CEO, Do Kwon, about the collapse of their algorithmic stablecoin, TerraUSD, which occurred in May 2022. The SEC claimed that Kwon and Terraform were involved in a crypto asset securities fraud worth several billion dollars. Prosecutors in South Korea have also leveled similar accusations against Kwon and associated entities of Terra.
The former CEO of Terra is facing a delay in his SEC trial as his extradition proceedings in Montenegro are taking longer than expected. This case has drawn significant attention in the crypto industry, given Terra’s prominence and the broader implications for regulatory oversight.
As the legal proceedings continue to unfold, the crypto industry will be watching closely. The outcome of this case could set a precedent for how the SEC handles similar cases in the future.