The Terraform Labs co-founder is reportedly still in Montenegro following his sentencing, awaiting extradition to the United States.
A federal judge has ordered the U.S. Securities and Exchange Commission to postpone the case against Terraform Labs until March, following Do-Kwon’s request to personally assist in his defense.
In papers filed Jan. 16 in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff moved the start date for the SEC v. Terraform Labs trial to March 25. “There are no absolute guarantees,” the judge added. Kwon had been scheduled to be released from extradition proceedings in Montenegro to appear in person for trial, but he granted his legal team’s request for the SEC to join him.
The trial was originally scheduled to begin on January 29, about a year after the SEC indicted Terraform and Kwon in February 2023. Both parties were accused of facilitating a “multi-billion dollar cryptocurrency securities fraud.” The token was previously called TerraUSD (UST) and Terra Luna.
Mr. Kwon’s whereabouts have been largely unknown since the Terra ecosystem collapsed in May 2022. Montenegrin authorities arrested the Terraform Labs co-founder in March 2023 and sentenced him to four months in prison for using forged travel documents. At the time of publication, he remains in the country as extradition proceedings between the United States and Montenegro continue.
It is unclear whether Kwon will be able to participate directly in the SEC case, but pretrial motions are in the works. Last December, Judge Rakoff granted summary judgment in favor of the SEC in favor of Terraform over its handling of unregistered securities, and in favor of Kwon and Terraform over its offering and sale of securities-based swaps.