SEC Pauses Terraform Labs Trial Pending Do Kwon’s Extradition

The SEC has approved a delay in the civil trial against Terraform Labs and its co-founder, Do Kwon, who faces accusations of a $40 billion cryptocurrency fraud.

This decision is intended to facilitate Do Kwon‘s extradition from Montenegro, enabling his participation in the trial. The SEC argues for a “modest” postponement based on Do Kwon’s expressed willingness to attend the trial, agree to extradition, and the potential for his presence in the United States by mid-March.

The SEC opposes separate trials, citing identical cases and the potential burden on witnesses. The decision on the new trial date rests with Judge Jed Rakoff, with the SEC proposing April 15 and Do Kwon’s lawyer requesting a delay until at least March 18.

The legal matter revolves around the collapse of TerraUSD and Luna, leading to a loss of approximately $40 billion in May 2022.

Last month, Judge Rakoff ruled that Do Kwon and Terraform Labs violated US law, and Do Kwon faces criminal charges and extradition requests. The delay allows for Do Kwon’s participation post-extradition.

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