The SEC has postponed the scheduled trial for Terraform Labs’ Do Kwon to assist in the extradition arrangements.

The United States Securities and Exchange Commission (SEC) has agreed to delay a civil case against Terraform Labs and its co-founder, who faces allegations of orchestrating a staggering $40 billion cryptocurrency fraud. This postponement aims to ensure Do Kwon's timely extradition from Montenegro, allowing him to engage in the trial process. SEC In a recent court submission made on Monday in Manhattan, the SEC contended that a brief delay of the trial originally set for January 29 was justified. This request was backed by statements from Do Kwon's legal representative, highlighting Kwon's eagerness to participate in the trial, his consent to be extradited from Montenegro, and the likelihood that he could be present in the United States by mid-March. Do Kwon The SEC raised concerns about splitting the trials for Terraform Labs and Do Kwon, arguing that both cases are fundamentally linked. They emphasized that conducting two separate trials would unnecessarily burden whistleblowers and retail investors, requiring their testimony on two different occasions.

The decision about the trial date now rests with United States District Judge Jed Rakoff. The SEC has suggested moving the date to April 15 due to scheduling issues, while Do Kwon's legal team has asked for a postponement until at least March 18. In a statement released on Monday, they expressed the intent to avoid further delays, even if Do Kwon encounters difficulties attending on the proposed new date.

The SEC The Collapse of TerraUSD Sparks Ongoing Legal Controversies  

The decision on whether to change the trial This ongoing legal issue arises from the failure of TerraUSD—a stablecoin aimed at maintaining a consistent value of $1—and Luna, a more traditional cryptocurrency closely associated with TerraUSD. Together, these coins saw losses exceeding $40 billion when TerraUSD could not uphold its anticipated $1 value in May 2022.

The SEC later claimed that Terraform and Do Kwon misrepresented the stability of TerraUSD and how a well-known South Korean mobile payment app leveraged the Terraform blockchain for transaction processing.

Last month, US District Judge Jed Rakoff determined that Do Kwon, alongside Terraform Labs, had committed violations of United States law by failing to register the digital currencies TerraUSD and Luna, both of which experienced a significant collapse in 2022. stablecoin Currently, Do Kwon faces related criminal charges in the US, as well as an extradition request from his native South Korea. He was...

The SEC’s recent agreement to delay the civil trial against Terraform Labs and its co-founder Do Kwon allows him to finalize his extradition and participate in the trial proceedings. 

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