Terraform Labs’ Do Kwon to miss start of SEC trial, report says

The crypto entrepreneur Do Kwon, best known for his failed algorithmic stablecoin, will likely skip the beginning of a civil trial on U.S. Securities and Exchange Commission (SEC) fraud charges.

Terraform Labs founder Do Kwon will likely skip the start of his Mar. 25 civil trial due to delays in his extradition from Montenegro, Reuters reports citing Kwon’s lawyer David Patton. Patton also confirmed that Kwon has no intention of seeking an adjournment for the trial date, as disclosed in a letter filed in federal court.

Kwon has been detained in Montenegro since March 2023, following his arrest alongside Terraform Labs’ former chief financial officer, Han Chang-Joon, as they were attempting to depart the capital on a private flight to Dubai.

The pair faced charges related to suspicious travel documents and were later convicted of forgery, after Interpol issued a red alert for Kwon. Authorities extended Kwon’s incarceration by four months to facilitate his extradition, responding to requests from both the U.S. and South Korea. Prosecutors in both countries plan to pursue charges against Kwon for fraud and other criminal violations stemming from Terra’s collapse in May 2022.

Despite the accusations, Kwon has consistently denied any wrongdoing. A recent court ruling in Montenegro favored Kwon’s extradition to the U.S. over his preferred destination of South Korea. In the meantime, Kwon is trying to appeal this decision, with his local lawyer Goran Rodic arguing that the ruling was based on inaccurate information, suggesting that the U.S. extradition request was received first.