The U.S. Securities and Exchange Commission (SEC) has agreed to postpone a civil lawsuit against Terraform Labs and its co-founder Do Kwon.
The postponement was made to allow Kwon to be extradited so he could attend the hearing. Kwon and Terraform Labs are accused of orchestrating a $40 billion cryptocurrency scam.
In a filing Monday in Manhattan federal court, the SEC advocated for a “modest” postponement of the hearing, which was originally scheduled for Jan. 29. The decision was based on statements from Kwon's lawyer, who stated that Kwon had accepted his extradition from Montenegro and that he could be in the United States by mid-March.
The SEC also opposed separate trials for Terraform and Kwon, arguing that the cases were nearly identical. They noted that two lawsuits would unnecessarily require whistleblowers and ordinary individual investors to testify twice.
U.S. District Judge Jed Rakoff will decide whether to move the trial date. The SEC requested April 15 to resolve scheduling conflicts. Kwon's lawyer requested a postponement until at least March 18, and on Monday stated that he would not request another postponement, even if Kwon could not attend the hearing on the new date.
Last month, Rakoff ruled that Terraform and Kwon violated US law by not registering TerraUSD and LUNA. In addition to the civil charges, Kwon also faces related criminal charges in the United States and an extradition request from his home country, South Korea.
*This is not investment advice.
