Terraform Labs' Do Kwon Seeks U.S. Trial Adjournment Amidst Montenegro Extradition Setbacks

Terraform Labs co-founder Do Hyeong Kwon, widely known in the crypto industry as Do Kwon, has sought an adjournment of a Securities and Exchange Commission's (SEC) trial, citing procedural delays in his extradition process from Montenegro.

Kwon's legal representatives have formally notified the court that the ongoing extradition process of the cryptocurrency executive in Montenegro is facing unforeseen challenges.

Do Kwon is not expected to attend the SEC's trial in the U.S., originally set for the end of January, and may not arrive until February or March, as per the court documents reviewed by Inner City Press.

"Mr. Kwon wishes to attend his trial. Counsel had hoped the extradition proceedings in Montenegro would proceed more quickly than they have. Unfortunately, it now appears that Mr. Kwon is not likely to be extradited until February or March at the earliest. We understand the Court cannot put the trial on hold indefinitely, but an adjournment until mid-March would provide a realistic possibility for Mr. Kwon to attend. For these reasons, Mr. Kwon does not waive his right to attend and requests a short adjournment of the trial date to allow for his attendance," Kwon's legal team told the court.

The delay in Mr. Kwon's extradition proceedings in Montenegro follows his legal team's successful appeal made against the High Court's decision to extradite the cryptocurrency mogul to either the United States or South Korea.

The Appeals Court in Montenegro recently ordered a retrial because of procedural issues.

"The Appellate Court of Montenegro, after the session of the panel on Dec.14, issued a decision in which it accepted the appeal of the defense attorneys of the defendant Kwon Do Hyeong, annulled the decision of the Higher Court in Podgorica Kv.br .1045/23 dated Nov. 17 and sent the case back to the first-instance court for retrial and decision," the statement from the Appellate Court read.

Moreover, the Appellate Court noted that the judge failed to properly inform Kwon of the reasons and the evidence for the extradition request of the U.S., as well as invite him to provide his defense, which is required by law.

"The investigating judge heard the defendant on the request of the Republic of South Korea, who agreed to be extradited by summary procedure in relation to this request, while he did not hear the defendant in relation to the request for extradition to the USA, which was delivered to that court before its hearing," the statement read.

Kwon is under legal scrutiny following the May 2022 collapse of stablecoin TerraUSD and cryptocurrency Luna, resulting in significant losses across the broader crypto market. This has triggered lawsuits against Kwon in various countries, including the U.S., South Korea and Singapore.