Do Kwon Tries to Delay SEC’s Terraform Trial so He Can Attend

The former CEO of Terra is being held in Montenegro after being caught in Podgorica's airport with falsified documents.

AccessTimeIconJan 12, 2024 at 5:26 a.m. UTC
Updated Mar 9, 2024 at 1:47 a.m. UTC

Counsel representing Do Kwon, the former CEO of Terra, has asked a U.S. court to delay a securities fraud trial against him and his former company so he can stand trail in person.

In a filing first spotted by Inner City Press, lawyers for Kwon, who is being held in a prison in Montenegro, requested the trial at a federal courthouse in New York be adjourned to mid-March. The postponement, they argued, would allow Kwon time to ask Montenegran authorities for permission to travel to the U.S., which has proven to be a lengthy process.

Judge Jed Rakoff of the U.S. District Court for the Southern District of New York will likely grant a decision on the issue early next week, after receiving input from the Securities Exchange Commission (SEC) and Terraform Labs, Inner City Press reported. The SEC and Terraform Labs must submit a letter in support of, or against, the request by Jan. 15.

Should the Court reject the request, the trial will begin in Kwon's absence on Jan. 29, 2024. In that case, the judge will likely remind the jury that Kwon's absence and inability to testify is “not unduly prejudicial to him," as per his counsel's request.

Kwon’s extradition has been delayed for months. Most recently, his counsel successfully appealed a Montenegro high court’s decision to extradite him to the U.S. or South Korea, with the country's Appeals Court ordering a retrial due to procedural issues.

In the U.S., Kwon and the SEC have both filed for summary judgment in their legal dispute, each asking a federal judge to decide in their favor without a trial, arguing that the opposing party has not substantiated their case sufficiently.

Edited by Parikshit Mishra.


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