Do Kwon Faces US Trial as Terraform Labs Lawsuit Heats Up: Extradition Approved, Pretrial Deadline Set

Terraform Labs Co-Founder Do Kwon

The legal saga surrounding Terraform Labs and its co-founder Do Kwon took a dramatic turn this week with two key developments: a pretrial deadline set in the ongoing SEC lawsuit and the approval of Do Kwon’s extradition to the United States from Montenegro.

Courtroom Countdown:

Judge Jed S. Rakoff has set a March 25th trial date in the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Terraform Labs and Do Kwon. To prepare, both parties must finalize depositions, counter-designations, and opposition to motions by March 11th. Additionally, a proposed consent order needs to be filed by March 18th, along with proposed jury charges. This flurry of activity suggests a trial on the horizon, with both sides gearing up for their arguments.

Extradition on Track:

In a separate but related development, a Montenegrin court approved Do Kwon’s extradition to the United States, overturning an earlier decision to send him to South Korea. While the exact timing of his arrival remains unclear, it’s highly likely he will be present for the trial proceedings. Do Kwon was initially detained in Montenegro in March 2023 and served a four-month prison sentence, with extradition proceedings ongoing throughout.

Also Read: Terra Classic Community Considers KYC Integration: LUNC Price on the Brink of Revival?

Securities Saga Continues:

The SEC lawsuit hinges on the classification of Terra’s LUNA and MIR tokens as securities. The US District Court of the Southern District of New York already ruled in favor of the SEC on this point, a decision that could have significant financial and legal implications for Terraform Labs and Do Kwon.

Global Implications: This case is being closely watched by the cryptocurrency industry, as it could set a precedent for how regulators approach digital assets. With the trial date approaching and Do Kwon’s extradition on track, the coming months promise further developments in this high-stakes legal battle.

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