US SEC trial against Terraform Labs postponed to allow Do Kwon extradition

A federal judge on Tuesday delayed the U.S. Securities and Exchange Commission's trial against Terraform Labs and co-founder Do Kwon over an alleged $40 billion cryptocurrency fraud, to allow time for Kwon to be extradited so he can attend.

In an order, U.S. District Judge Jed Rakoff in Manhattan pushed back the trial to March 25 from Jan. 29, with no further delays even if Kwon were not extradited.Despite Kwon's representation that he has consented to his extradition from Montenegro, where he is presently being held, there is no absolute guarantee that he will be released in time," Rakoff wrote.

"Nevertheless," the judge added, "the court will indulge his counsel's request given their express recognition that the trial cannot be further postponed."Its civil case against Terraform and Kwon stems from the collapse of TerraUSD, a “stablecoin” designed to maintain a constant $1 price, and the more traditional token Luna, which was closely linked to TerraUSD.

Both cryptocurrencies lost an estimated $40 billion or more TerraUSD in May 2022 failed to maintain its $1 peg.