Terraform founder Do Kwon seeks delay in SEC trial

abdelaziz Fathi

The legal team representing Do Hyeong Kwon, the co-founder and former chief of Terraform Labs, has filed a request to postpone the upcoming Securities and Exchange Commission (SEC) trial against him.

Terraform founder Do Kwon

This request, mentioned in a recent court filing first reported by Inner City Press, cites potential delays in Kwon’s extradition as the primary reason.

Kwon’s legal team noted in the filing that his extradition to the United States is unlikely to occur before February or March. They argue that an adjournment of the trial until mid-March would realistically allow Kwon to be present. In the event that this request is denied, Kwon’s defense plans to ask the court to inform the jury about his absence and inability to testify in a manner that won’t unfairly prejudice the case against him.

The legal proceedings against Kwon have been ongoing since last year. In December, an appeals court in Montenegro overturned an earlier decision to extradite Kwon to South Korea and the U.S. The SEC trial against him and Terraform Labs is currently scheduled for January 29.

The SEC has charged Terraform Labs and Kwon with orchestrating a “multi-billion dollar crypto asset securities fraud,” particularly focusing on the collapse of the algorithmic stablecoin TerraUSD in May 2022. South Korean prosecutors have leveled similar accusations against Kwon and Terraform affiliates.

Kwon was arrested in March last year at an airport in Montenegro for attempting to travel with forged documents. Kwon, who is the founder of Terraform Labs, testified that he believed the passports were legitimate​​​​.

Many enforcement authorities and financial regulators, as well as the Interpol, were already on the hunt for Kwon for his alleged involvement in the collapse of terraUSD (UST) stablecoin and the Terra ecosystem.

LUNA tanked to virtually zero in a couple of hours after having peaked close to $120 with a market cap of more than $18.5 billion. Additionally, its sister stablecoin TerraUSD, or UST, lost its dollar peg before the collapse.

Globally, investors in TerraUSD and Luna lost an estimated $42 billion. Worse still, the meltdown has shaken confidence in the broader cryptocurrency industry and led to the failure of several major crypto companies including crypto lender Celsius and crypto fund manager Three Arrows Capital.

The turmoil also set off a domino effect, triggering industry-wide bankruptcies that peaked with the collapse of the world’s second largest crypto exchange, which was part of the disgraced FTX Sam Bankman-Fried’s crypto empire.

  • Read this next

    Digital Assets

    Pyth Network Rolls Out Bitcoin ETF Price Feeds

    The Pyth Network, a leading provider of real-time market data for crypto, equities, FX, and commodities to the DeFi market, has rolled out its latest feature: Bitcoin ETF Price Feeds. These feeds provide real-time, reliable price data for 13 Bitcoin exchange-traded funds, making them accessible to DeFi developers and users. 

    Digital Assets

    Circle to end USDC support on Justin Sun’s Tron Network

    Circle, the company behind the widely-used USD Coin (USDC), announced it will stop supporting its stablecoin on the Tron blockchain. The issuer said the move is part of Circle’s ongoing efforts to ensure USDC maintains its reputation as a trusted, transparent, and safe digital currency.


    JonesTrading deploys FlexOMS for equities, eTrading, outsourced trading

    “Firstly, our aggressive timelines meant that we needed to work with a partner who understood our business and offered flexible yet powerful technology solutions to meet our requirements. That was essentially the baseline.”

    Digital Assets

    First-Ever ICO on Bitcoin Blockchain: $3.1M Raised in Under 6 Days

    Bitcoin Dogs has now raised a total of $3.1M in the first 6 days of its historic presale. The project’s BRC-20 token, 0DOG, is the first-ever ICO on the Bitcoin blockchain.

    Executive Moves

    iSAM Securities hires Aaron Brown for MENa expansion

    “Aaron’s wealth of experience in institutional sales, strong network and in-depth understanding of client requirements in the Middle East will help us to capitalize on recent client demand in the region, whilst delivering the same innovative, high-quality products and services we offer to all our clients globally.”

    Fundamental Analysis

    Global FX Market Summary: EUR, Fed Minutes February 21, 2024

    Hawkish Fed minutes could strengthen USD, dovish BoE hints could boost euro, mixed economic data leaves impact unclear, FOMC minutes release today holds the most weight.

    Digital Assets

    360T launches Crypto NDF offering

    “By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in Distributed Ledger Technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto.”

    Technical Analysis

    FTSE 100 index Technical Analysis Report 20 February, 2024

    The FTSE 100 index is likely to fall to support level 7600.00 after reversing from resistance level 7750.00.

    Retail FX

    Afterprime enhances trade reporting with PrimeXM and TRAction

    “This collaboration has made setting up EMIR and MIFIR reporting for our CySEC entity a breeze, allowing us to maintain our focus on providing best-in-class pricing and top-notch customer service.”