The U.S. Securities and Exchange Commission (SEC) has agreed to delay its trial against Terraform Labs and its co-founder, Do Kwon. Originally set for January 29th, the trial has been postponed to mid-March to allow time for Kwon’s extradition from Montenegro.
After initial resistance, Kwon has reportedly agreed to attend the civil trial and participate in the extradition process. However, last week, lawyers representing Do Kwon asked a U.S. court to delay the SEC trial for the Terraform Case.
According to crypto Twitter user FatMan, Kwon’s legal team aims to prevent the jury from knowing specifics about his Montenegro detention over alleged forged documents.
Given the similarity between the Terraform Labs and Kwon cases, the SEC has argued against separate trials. After refusing to reconsider dismissal motions, Judge Jed S. Rakoff agreed to delay the proceedings to March 15th to enable Kwon’s presence.
In addition to the looming SEC penalties, South Korean authorities have issued criminal charges and an extradition request against Kwon. The ongoing saga highlights increasing crypto sector regulations worldwide after extreme volatility exposed consumer risks.