The legal battle surrounding Terraform Labs co-founder Do Kwon takes a new turn as the US Securities and Exchange Commission (SEC) prepares for a civil trial against him on March 25. However, Kwon’s absence is likely due to extradition delays from Montenegro.
No Request for Postponement
Do Kwon’s lawyer, David Patton, confirmed that Kwon will not seek a postponement of the trial, indicating his client’s determination to face the SEC’s fraud charges head-on. This decision signals Kwon’s commitment to the legal process, regardless of his extradition status.
SEC’s Allegations
The SEC’s lawsuit accuses Terraform Labs and Kwon of misleading investors about the stability of TerraUSD (UST), a stablecoin pegged to maintain a $1 value. The SEC also alleges that they misrepresented the use of the Terraform blockchain for transactions in a prominent Korean mobile payment app.
Additional US Criminal Charges
Complicating Kwon’s legal situation are additional US criminal charges. He has been in custody in Montenegro since March 2023. In December 2023, a US District Judge found that Terraform Labs and Kwon violated US securities laws by failing to register UST and LUNA.
Montenegrin Court’s Decision
A Montenegrin court recently favored Kwon’s extradition to the United States over South Korea, his preferred destination. Kwon’s local counsel criticized the decision, citing errors in the extradition process.
Potential for Appeal
There is a possibility that the Montenegrin Court of Appeal could overturn the high court’s decision on Kwon’s extradition to the United States. Kwon’s legal team is likely to challenge the ruling vigorously to prevent his extradition.
Terra Luna Classic’s Current Value
At the time of writing, Terra Luna Classic (LUNC) is trading at $0.000133022.
