Do Kwon to miss part of US fraud trial due to extradition delay
Initially set for January 29, the SEC postponed Do Kwon’s trial by two months to allow him to attend, but extradition delays will see him miss the start of the trial on March 25.
Initially set for January 29, the SEC postponed Do Kwon’s trial by two months to allow him to attend, but extradition delays will see him miss the start of the trial on March 25.
Despite the many legal cases against Terraform Labs and its founder Do Kwon having the company in dire straits, the bankruptcy petition does not mean the immediate end of the company.
A U.S. federal judge has delayed the jury trial of former Terraform Labs CEO and founder Do Kwon, who was charged in February 2023 over the Terra UST and LUNA scandal that saw an estimated $60 billion being wiped out of the digital asset space.
Besides ruling in favor of the U.S. securities regulator on claims Terraform and former CEO Do Kwon sold unregistered securities, Judge Rakoff also denied the defendants' motion for a summary judgment on fraud claims.
The U.S. was in the lead in its race with South Korea for Do Kwon’s extradition, but an appellate court has canceled the ruling, saying the process was irregular.
Montenegro's "top justice official" privately said he plans to send Do Kwon to the U.S., where he is facing charges related to the collapse of the Terra ecosystem, the Wall Street Journal reported.
Following the approval, it is now up to Montenegro’s Minister of Justice to decide which country gets the first crack at Do Kwon, who is currently detained in Montenegro.
The U.S. securities regulator believes there's no need for a trial as there is "no genuine dispute as to any material fact," and no "rational jury" would believe Do Kwon isn't guilty.
Following a lengthy investigation into the Terra collapse, Terraform Labs and Do Kwon filed a motion to dismiss the SEC case, claiming that the probe didn't yield any result proving their misdeed.
The digital asset lender has five days from the date of the order to comply by handing over the Securities and Exchange Commission’s requested documents, creating a deadline of October 18.
A paper from the International Monetary Fund outlines a framework for understanding and tracking systemic risks stemming from digital assets, as well as setting out tools to assist countries in containing these risks.
Prosecutors in South Korea plans to leverage the recent XRP ruling against Terraform Labs CEO Do Kwon's alleged securities fraud acts.