For more than a year, a complicated legal drama has been playing out around Do Kwon, co-founder of Terraform Labs. This saga, currently playing out in the hallways of various courtrooms around the world, will continue to cast a shadow over the crypto market in 2024. Do Kwon was supposed to be extradited to the USA, but the Terra founder is trying to delay this in every possible way.
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A legal tangle across borders
Kwon's legal troubles began with the collapse of Terraform Labs' stablecoin TerraUSD and its associated LUNA token. The collapse led to an indictment by the US Securities and Exchange Commission in February 2023, accusing Kwon of participating in a multi-billion dollar crypto fraud. As this case becomes more complex, it becomes clear that the consequences of Kwon's actions extend beyond the crypto market.
After his arrest in Montenegro in March 2023 for using forged travel documents, Kwon is now requesting a postponement of his trial date in the United States. His legal team emphasized his desire to attend the trial in person, which is scheduled for the end of January. In this way, his lawyers are trying to further postpone the trial until March. Whether this will succeed remains to be seen.
CRYPTO IN THE COURTS: Do Kwon Wants to Participate in SEC-Terraform Labs Trial, Asks to Delay Trial to Mid-March for Extradition – Inner City Press Story: Full filing on Patreon here pic.twitter.com/3d525J8B4p
— Inner City Press (@innercitypress) January 12, 2024
A twist in the extradition process
Previously, the story took an unexpected turn when Montenegro's Supreme Court made a mistake that prevented Kwon's extradition. His legal team points out a procedural error: not questioning Kwon, which is required by law. This turns the entire extradition process on its head and sends the case back to the Podgorica City Court. This potentially means a long delay before Kwon can be brought to justice for his alleged crimes.
Impact on the crypto industry
The Kwon case remains a thorn in the side of the entire crypto market. Many in the crypto community hope that Kwon will soon be brought to justice for his role in one of the biggest crypto dramas of all time. His actions caused billions to go up in smoke. A good and speedy outcome to the legal dispute is actually in everyone's interest.
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