Do Kwon's Extradition for SEC Trial Likely Delayed Due to Legal Complications
Summary:
Do Kwon, co-founder of Terraform Labs, may not be extradited to the United States in time for his court trial with the U.S. Securities and Exchange Commission (SEC). His lawyer warns that unforeseen issues may push back his extradition from Montenegro where he's been residing since March 2023. Kwon's representation in Montenegro contends that the country's High Court incorrectly ruled to extradite him to the U.S., basing their decision on false information regarding the timing of extradition requests from South Korea and the U.S. Kwon was arrested in Montenegro in March 2023 and has remained there amidst ongoing extradition discussions. He is facing charges of a multi-billion dollar cryptocurrency securities fraud related to Terraform Labs.
The legal representation for Do Kwon, co-founder of Terraform Labs, suggests he may not be sent back to the United States in time for his court hearing with the Securities and Exchange Commission (SEC). The documents filed in the U.S. District Court for the Southern District of New York on February 26th by David Patton of Kaplan Hecker & Fink point out Kwon's extradiction from Montenegro, where he has resided since March 2023, may not occur before the end of March. Patton mentioned unforeseen hurdles which delayed the process. Patton also stated that Kwon might miss at least the beginning of the trial set to kick off on March 25, 2024.
Goran Rodic, Kwon's legal counsel in Montenegro, explained that the nation's High Court inaccurately ruled on February 21 to extradite Kwon to the U.S. based on false information. The High Court mistakenly thought the U.S. filed for extradition before South Korea, which was not the case. Rodic expressed that they are challenging the High Court's decision from February 21, 2024, because of the court's error in ordering Kwon's extradition to the U.S.
Based on the documentation provided by Kwon's representatives, the United States likely has the upper hand in the extradition tug-of-war with South Korea. Kwon has been held in Montenegro since his arrest in March 2023 for utilizing fraudulent travel papers, and has stayed there for about a year while extradition requests were being managed. Kwon's location remained mostly uncertain between the time Terra crashed in May 2022 until his arrest.
The SEC filed a lawsuit against Kwon and Terraform Labs in February 2023, and Kwon was later hit with eight criminal charges by the U.S. Attorney’s Office in March 2023, shortly following his capture. They stand accused of operating a multi-billion dollar cryptocurrency securities scam tied to TerraUSD (UST) and Terra (LUNA) trades. Judge Jed Rakoff, who is handling the civil lawsuit, ruled in December 2023 favoring the SEC’s argument that Terraform allegedly sold unregistered securities. Despite prior delays to the trial date to fit Kwon's schedule, the hearing is expected to begin on March 25. Notably, former U.S. President Donald Trump will also face his first criminal trial in the same court district on the same day.
Published At
2/27/2024 6:30:00 PM
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