US Court Postpones Trial of Terra-Luna Key Figure Kwon Do-hyung to March

Accepted Request from Attorney Kwon's Side, Delayed by About Two Months
"Considering Possibility of Attendance"

A U.S. court has postponed the trial date for Kwon Do-hyung, CEO of Terraform Labs and a key figure in the 'Terra·Luna' crash scandal, on fraud charges to March 25. The court accepted the defense's request for more time until Kwon can be extradited from Montenegro to the United States to attend the trial.

Kwon Do-hyung, CEO of Terraform Labs, is heading to the Podgorica District Court in Podgorica, the capital of Montenegro, to attend a trial related to a forged passport case.
[Photo by Vijesti, a daily newspaper in Montenegro]

According to major foreign media on the 16th (local time), the U.S. District Court for the Southern District of New York in Manhattan delayed Kwon's trial date, originally set for the 29th of this month, by about two months. Judge Jed Rakoff noted in the order to change the date, "Although Kwon has agreed to extradition from Montenegro, where he is currently detained, to the United States, there is no absolute guarantee that he will be released in time to avoid being late for the trial schedule." He added, "Nevertheless, the court accepts the request considering the defense's acknowledgment that there will be no further extensions."

Judge Rakoff drew a line, stating that even if Kwon cannot attend the trial, the date will not be postponed beyond March 25. Earlier, on the 11th, Kwon's defense attorneys requested the Manhattan federal court to postpone the trial date to after March 18. The defense explained that the extradition process for Kwon in Montenegro is in its final stages, and there is a possibility that he will be extradited to the U.S. and attend the trial as early as mid-March. The U.S. Securities and Exchange Commission (SEC), which filed a civil lawsuit against Kwon, is also reported to have agreed to the date change.

The SEC sued Kwon and Terraform Labs in federal court last February, alleging that they caused at least $40 billion (approximately 54 trillion won) in damages to investors through cryptocurrency fraud. Kwon is a co-founder of Terraform Labs, which issued the cryptocurrencies 'Terra·Luna.' He has been pursued by both South Korean and U.S. authorities on charges including market manipulation and fraud related to the Terra·Luna crash. Before the crash, in April 2022, he left South Korea for Singapore and went into hiding. He was arrested in Montenegro last March, 11 months after fleeing, while attempting to leave the country with a forged passport. Since then, he has been detained in Montenegro. Both South Korean and U.S. judicial authorities have requested Montenegro to extradite Kwon. The Podgorica High Court in Montenegro approved his extradition last November, but Kwon appealed the decision. The appellate court sent the case back to the High Court last month, and it is currently under reconsideration.