Do Kwon, the co-founder of Terraform Labs, is unlikely to be extradited to the United States by the end of March, according to his legal representatives. His extradition from Montenegro, where he has been since March 2023, faces delays due to procedural errors, as indicated by his lawyers. This development casts doubt on Kwon’s presence at the upcoming trial with the U.S. Securities and Exchange Commission (SEC), set to begin on March 25, 2024.
Legal Challenges and Court Proceedings
David Patton, part of Kwon’s legal team in the United States, expressed that the extradition process has encountered unexpected hurdles, slowing down Kwon’s return to the U.S. Despite these delays, Patton emphasized that they would not request a postponement of the trial date. Meanwhile, in Montenegro, lawyer Goran Rodic pointed out that the High Court’s decision to extradite Kwon was based on incorrect information regarding the timing of extradition requests between the U.S. and South Korea. Rodic highlighted the appeal against the court’s decision due to these inaccuracies and the prolonged legal process, further indicating that Kwon’s extradition might not occur before the end of March.
Implications for the SEC Trial
The legal intricacies surrounding Kwon’s extradition raise questions about his availability for the SEC trial, where Terraform Labs is accused of conducting a multi-billion dollar crypto asset securities fraud. The SEC’s lawsuit and the criminal charges filed by the U.S. Attorney’s Office against Kwon and Terraform revolve around the alleged offering of unregistered securities, specifically TerraUSD (UST) and Terra.
Judge Jed Rakoff, presiding over the civil case, has already ruled in favor of the SEC in a summary judgment against Terraform for offering unregistered securities. Despite the extradition challenges, the trial is scheduled to commence on March 25, coinciding with another high-profile case in the same court district involving former U.S. President Donald Trump.
