The legal proceedings involving Do Kwon, the ex-CEO of Terraform Labs, have taken a new turn. Kwon’s legal team has requested a delay in the Securities and Exchange Commission (SEC) trial. The request for postponement is due to the ongoing complications related to Kwon’s extradition from Montenegro, where he is currently serving a four-month sentence for document forgery.
This development follows a successful appeal by Kwon for his extradition to either the U.S. or South Korea. The Montenegro Appeals Court ordered a retrial due to procedural irregularities. Kwon, along with Terraform Labs, is facing SEC charges for allegedly defrauding investors through cryptocurrency schemes. The trial was initially set to begin at the end of January.
As revealed in a filing, Kwon’s legal team has formally requested a trial postponement until mid-March. The main reason for this delay is to give Kwon enough time to navigate the complex process of seeking permission to travel to the U.S., a procedure that has proven to be lengthy.
Judge Jed Rakoff of the U.S. District Court for the Southern District of New York will make the decision on this adjournment request. It is expected that Judge Rakoff will make a decision early next week, after receiving input from both the SEC and Terraform Labs. Both parties are required to submit their positions on the delay request by January 15.
If the court rejects the postponement, the trial is scheduled to proceed on January 29, 2024, even without Do Kwon’s presence. In this case, the judge is likely to instruct the jury that Kwon’s inability to testify should not be seen as unduly prejudicial to him, in line with the defense’s stance.
Kwon’s extradition issues add complexity to a legal situation already marked by SEC accusations. The SEC filed fraud charges against Kwon in February 2023, alleging his involvement in a multi-billion dollar crypto-securities fraud. These charges are directly related to the collapse of Terraform Labs’ stablecoin TerraClassicUSD (USTC) and its associated crypto token, Terra Luna Classic (LUNC).
In other news, crypto exchange Gate.io’s Twitter was hacked, resulting in a fake giveaway post. Coinbase is set to launch a film trilogy themed around Bored Apes. The EU has voted for DAC8, which targets enhanced crypto tax reporting.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 🇲🇪 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Do Kwon, Jed Rakoff |
| Companies | Terraform Labs, Securities and Exchange Commission, Montenegro Appeals Court, Coinbase, U.S. District Court for the Southern District of New York, Gate.io |
| Currencies | TerraClassicUSD, Terra Luna Classic |
| Securities | None |
