The legal counsel for Do Kwon, the former CEO of Terra, has requested a postponement of the Securities and Exchange (SEC) trial in the U.S. due to the uncertainty surrounding the timing of his extradition from Montenegro.
At the beginning of the year, the SEC brought charges against Kwon, accusing him of leading a fraudulent scheme involving multi-billion dollar crypto asset securities.
Do Kwon’s Extradition Delays
As per a document initially identified by Inner City Press, the legal representatives of Kwon have noted that the extradition proceedings in Montenegro are progressing slower than expected. They anticipate that Kwon may not be present in the U.S. until February or March.
If the court rejects the request for a delay, Kwon’s counsel has suggested instructing the jury to consider his absence and inability to testify as not unduly prejudicial to him.
In the U.S., both Kwon and the SEC have submitted motions for summary judgment in their legal dispute. Both parties are urging a federal judge to rule in their favor without proceeding to trial, asserting that the opposing side has failed to substantiate their case sufficiently.
Notably, the SEC has recently referenced the Terraform ruling in lawsuits against BINANCE and COINBASE to bolster its position.
Earlier this year, the South Korean crypto entrepreneur faced arrest for allegedly attempting to travel with a counterfeit passport. He was charged by both American and South Korean authorities, including violations of capital markets rules.
If convicted, he could face a substantial prison sentence. Dan Sunghan from the financial crime investigation bureau at the Seoul Southern District Prosecution stated in a BNN Bloomberg interview that Kwon might be subject to over four decades of imprisonment in both the U.S. and South Korea.
Terra’s Collapse and Bankruptcy
Kwon founded Terraform Labs, which was responsible for the once highly popular Terra blockchain protocol. The project primarily focused on algorithmic stablecoins, with its native cryptocurrency, LUNA, ranking among the top digital assets by market cap.
However, in May 2022, Terra experienced a collapse, contributing to a severe bear market that led several crypto projects associated with it to declare bankruptcy.
Kwon is among a notable group of cryptocurrency entrepreneurs who have encountered significant legal challenges over the last year.
In addition to the Terraform Labs founder, this group includes Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, and Changpeng “CZ” Zhao, the founder and former CEO of Binance. Each of these individuals faces distinct criminal accusations.
In November 2023, Bankman-Fried was found guilty and imprisoned, and shortly thereafter, Zhao also pleaded guilty to the charges brought against him.
