Do Kwon Extradition Delayed, Likely to Miss SEC Fraud Trial Start
Terra founder Do Kwon will likely miss at least the beginning of a U.S. civil fraud trial slated to kick off on March 25th, according to his attorney. The delay stems from ongoing extradition proceedings in Montenegro, according to Reuters.
Kwon faces charges from both the Securities and Exchange Commission (SEC) as well as criminal authorities relating to the collapse in 2022 of his TerraUSD and Luna cryptocurrencies that wiped out $40 billion.
Key Details:
- Do Kwon face U.S. charges over the Terra collapse.
- Currently held in Montenegro, pending extradition ruling.
- Lawyer says he won’t make the March 25th SEC trial start.
- Appeals underway over extradition to the U.S. vs South Korea.
Read more: Terra’s Do Kwon Will Be Extradited To The U.S.
In a letter to the New York federal court Monday, Kwon’s lawyer, David Patton, stated Kwon will refrain from seeking an adjournment of the trial date regardless of the extradition timeline.
Court ruled Do Kwon extradition to the U.S
Last week, a Montenegrin court ruled Kwon should be extradited to the U.S. instead of South Korea. However, his local counsel, Goran Rodic, says the decision contained “numerous unanticipated mistakes” and was based on inaccurate information.
An appeal has been filed contesting the ruling. Rodic does not expect the process to conclude before the end of March, meaning Kwon will likely be absent for at least the initial phase of the U.S. proceedings.
Read more: Ethereum Outpaces Bitcoin In 2024 With 33% Gain: Report
Both Kwon and Terraform Labs face civil charges laid by the SEC over allegations they misled TerraUSD investors about the stablecoin’s fragility and its reserve backing.
In December, District Judge Jed Rakoff ruled the unregistered securities sale violated U.S. laws. The upcoming jury trial will now determine if penalties should apply.
The Terra founder continues to maintain his innocence. However, the dragging extradition means he is almost certain to be absent on March 25th.
