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Co-founder of Terraform Labs, Do Kwon, is facing potential delays in the extradition process from Montenegro, which has raised about his presence at the upcoming civil trial in the USA against the US Securities and Exchange Commission, scheduled to begin on March 25, 2024.
Extradition Complications and Delay
Recently, the court of Montenegro ruled to extradite Do Kwon to the United States, instead of his preferred destination, South Korea. Kwon is currently appealing this ruling, arguing that the lower court’s decision was based on erroneous information regarding the timing of the extradition requests.
In a letter filed in federal court, Kwon’s lawyer, David Patton, stated, “I do not expect Mr Kwon to be extradited anywhere before the end of March.” This strong and confident statement from Kwon’s lawyer suggests a significant likelihood that Kwon may miss at least the beginning of his legal battle against the SEC, if not the whole initial phase.
However, despite such complications, Kwon with his lawyer Patton, seems to remain committed to not seeking an adjournment for the trial which is scheduled to commence on 25 March 2024.
The Legal Tension Looming Around
Kwon, along with his company Terraform Labs, has been entangled in legal proceedings initiated by the SEC in February last year. The SEC alleges that TerraUSD and Luna cryptocurrencies, associated with Terraform Labs, collapsed in May 2022, causing substantial losses of around $40 billion in the crypto markets.
The SEC claims that Terraform and Kwon deceived investors regarding the stability of TerraUSD, a stablecoin designed to maintain a constant $1 price. The commission also contends that misinformation was provided about how a popular Korean mobile payment app utilized the Terraform blockchain for transaction settlements.
Just like any accused, Kwon has strongly denied any such wrongdoing.
However, what’s shocking is that, in addition to the SEC charges, Kwon also faces U.S. criminal charges. His extended detention in Montenegro, dating back to 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 Do Kwon is getting ready to be extradited to the US, the looming question remains whether he will miss the start of his SEC trial. With the March 25 trial date approaching, the crypto community is eagerly awaiting the hearing of this high-profile, white-collar crime case.