The U.S. Securities and Exchange Commission has agreed to postpone Do Kwon’s civil trial, allowing the indicted co-founder of Terraform Labs to be extradited and attend the proceedings. The request for a delay until at least March 18, made by Kwon’s lawyer, was deemed justified by the SEC in a recent filing in a Manhattan federal court. The regulator characterized the requested adjournment as “modest.” Importantly, there won’t be separate trials for Terraform and Kwon, as this would necessitate whistleblowers and retail investors to testify twice, an unnecessary burden.
Kwon’s legal representation earlier assured the court that they wouldn’t seek further adjournments even if Kwon couldn’t attend on the new proposed date. In case the court rejects the plea for a further delay, Kwon’s counsel requested that the jury be informed that his absence and inability to testify should not be considered unduly prejudicial to him.
The SEC, facing scheduling conflicts, proposed April 15 as a suitable date for the trial. The ultimate decision lies with U.S. District Judge Jed Rakoff, who will determine whether to move the trial date. These developments set the stage for Do Kwon’s potential extradition to the U.S. by mid-March to face charges related to an alleged $40 billion cryptocurrency fraud scheme.
Do Kwon’s Trial Drama Unfolds in Global Jurisdictions
The collapse of TerraUSD, the stablecoin developed by Terraform Labs in May 2022, represented a significant setback for the crypto industry, causing substantial losses for investors. Legal actions were initiated against Do Kwon and his team in multiple jurisdictions, including Korea, Singapore, and the United States, following TerraUSD’s collapse. Both the South Korean and American governments have formally requested Kwon’s extradition.
In the previous month, a U.S. court ruled that Terraform and Do Kwon violated U.S. law by failing to register TerraUSD and Luna. The trial, initially scheduled for late January, is characterized by legal maneuvering, with both parties filing for summary judgment, urging the federal judge to rule in their favor without a trial. Each side contends that the other has inadequately substantiated its case.