Do Kwon’s Legal Counsel Seeks Delay In January SEC’s Trial
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Terra’s former Chief Executive Officer, Do Kwon, has requested that his securities fraud trial be delayed to enable him to stand trial in person. Kwon was caught in Podgorica’s airport by security agencies and has been held in Montenegro, where he is awaiting trial in the U.S.
But in a filing by his legal representatives, Kwon pleaded that he is still being helped in a Montenegro prison and needs to be physically present in the Court when his trial is being held. Kwon’s lawyers asked that the trial, which will be held at a federal courthouse in New York, be shifted to March when he will be available in person.
They argued that the postponement would give Kwon the time to ask for permission from the Montenegrin authorities to travel to the U.S. to face the trial. The process will be lengthy, and the legal representatives believe two months will be enough time to get the approval.
The U.S. Court Will Consult The SEC Before Approving The Request
U.S. District Court Judge for the Southern District of New York, Jed Rakoff, will review the request and decide next week.
He is set to consult Terraform Labs and the Securities and Exchange Commission (SEC) before granting the request. Terraform Lab and the SEC must send a letter against or in support of the request by January 15, 2024.
If the Court rejects the request, Kwon’s trial will likely continue without his physical presence on January 29. If this happens, the jury will be reminded that the absence of Kwon is “not unduly prejudicial to him,” based on the request by his counsel.
The Kwon Trial Has Faced Numerous Delays
The successful extradition of Kwon has been delayed for several months. In the latest delay, his counsel approved postponing his extradition to South Korea or the U.S. However, the country’s Appeals Court cited procedural issues and ordered a retrial.
The SEC charged Kwen and Terraform for defrauding investors in cryptocurrency-related schemes. The regulator was supposed to begin his trial at the end of this month. But the recent appeal means that the trial could be delayed again.
Kwon is expected to stay out of his four-month sentence in Montenegro prison for carrying forged documents. The U.S. SEC has come hard on cryptocurrency companies that use various schemes to deceive investors into investing in ill-fated projects. The regulator says it will continue to ensure sanity within the crypto and digital asset space in general.
