Do Kwon Seeks to Delay SEC Trial Amid Extradition Uncertainty

• The Terra Luna founder might not be able to appear in the U.S. in March.
• Kwon’s legal team proposes that his absence should not be considered unduly prejudicial.
• The slow progress in Montenegro’s extradition will prevent Do Kwon from appearing in the U.S. trial.

In a strategic move, Do Kwon, the founder of Terraform Labs (TFL), is attempting to postpone the impending trial with the U.S. Securities and Exchange Commission (SEC) until his extradition proceedings from Montenegro are finalized. 

Kwon’s legal team has formally requested the U.S. court delay the trial, citing uncertainty regarding the timeline of his extradition. The requisition was communicated through a filing dated January 11 to U.S. District Judge Jed S. Rakoff. Attorney Matthew Russell of Inner City Press called attention to the move in a recent statement on X.

In the filing, the legal team emphasized  Kwon’s wish to attend the U.S. trial. However, the request revealed that the extradition process in Montenegro is progressing slower than anticipated. As a result, Kwon’s legal representatives estimate that the disgraced Terra Luna founder might only be able to appear in the U.S. in February or March at the earliest. 

Furthermore, Kwon’s counsel proposes that if the court rejects the plea for postponement, the jury be informed that his absence should not be considered unduly prejudicial to him.

The U.S. trial is scheduled to commence at the end of January, creating a tight timeline for Kwon’s potential participation. The legal maneuver comes amid a backdrop of complications in the extradition process.

In March 2023, the co-founder of Terraform Labs faced arrest in Montenegro on charges of utilizing forged travel documents. Consequently, he was handed a four-month prison sentence.

The extradition proceedings for Kwon have encountered delays as his legal team appealed the decision of a Montenegro high court, which had initially ruled in favor of deporting him to either the U.S. or South Korea. The Appeals Court intervened, mandating a retrial for procedural issues.