SEC Agrees to Postpone Do Kwon Trial For Extradition Completion

Published: Jan 16, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

The U.S. Securities and Exchange Commission has consented to delay the civil trial against Do Kwon, co-founder of the failed stablecoin TerraUSD, to allow time for his extradition. Kwon was scheduled to face trial over allegations he violated securities laws in the wake of the $40 billion Terra ecosystem wipeout.

  • SEC filing agrees to adjourn trial from late January to April after Kwon’s request, citing extradition progress.
  • Kwon was arrested in Montenegro last year on falsified passport charges amid a pursuit by global law enforcement.
  • The regulator dismissed the call to separate the trial from corporate defendant Terraform Labs to avoid duplicative proceedings.

Kwon agreed not to seek any further trial delays pending his arrival in the U.S. by March, according to a court document filed Monday. His legal team said he wishes to actively participate in the court case mounted by the SEC.

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“Mr. Kwon will make no additional requests for adjournment of the trial date, even if he is still not able to attend trial on the new date set,” Kwon’s attorney mentioned in the filing.

Do Kwon’s Terra collapse was one of the biggest in 2022

The SEC brought charges against Kwon and Terraform Labs, alleging they misled investors by failing to register TerraUSD and its sister token Luna as securities offerings prior to their spectacular devaluation. A federal judge in December ruled the tokens qualified as securities amid the epic collapse.

Kwon has been detained in Montenegro since last year after Interpol issued a red notice for the South Korean national’s role in the wipeout. In addition to SEC penalties, he faces criminal wire fraud and conspiracy counts that could see jail time if convicted.

Read more: Tether Pushes Back On UN Crypto Crime Report, Calls For Blockchain Education

The trial delay aims to allow the extradition process to conclude so Kwon can assist his defense team. However, the SEC opposed a request for separate proceedings given the intertwined facts behind both defendants’ culpability.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.