SEC agrees to delay Terra trial so that Do Kwon can attend proceedings

The U.S. Securities and Exchange Commission (SEC) has agreed to hold a proceedings against Terraform Labs and its erstwhile apical executive, Reuters said connected Jan. 15.

The regulator said that a “modest” hold of the proceedings day is justified due to the fact that Terraform Labs’ co-founder, Do Kwon, intends to be the trial.

Reuters said that Kwon has agreed to extradition from Montenegro and could get successful the U.S. by mid-March. Whereas the proceedings was primitively scheduled for Jan. 29, the SEC has agreed to hold the proceedings to April 15.

Reports of Kwon’s own attempts to hold the trial archetypal emerged connected Jan. 11. At that time, Kwon’s lawyers sought to person the proceedings delayed to March 18, astir 1 period earlier the day suggested by the SEC itself. Kwon’s lawyer added that helium would not question further adjournments if Kwon is not capable to attend.

Despite statement from some parties, Judge Jed Rakoff, who presides implicit the case, indispensable inactive determine whether to assistance the request.

SEC is opposed to abstracted trials

The SEC besides said successful its latest filing that it is against holding abstracted trials for Terraform Labs and Kwon. It said that the 2 cases are astir identical and that 2 abstracted trials would necessitate repetition testimony.

Reuters cited a tribunal filing that is not presently publically disposable arsenic its source. Neither the SEC oregon Terraform Labs person commented connected the matter.

The SEC primitively charged Terraform Labs successful February 2023, erstwhile it alleged that the crypto institution committed billions of dollars worthy of fraud. Though the lawsuit has not concluded, a justice issued summary judgments successful December, favoring Terra and the SEC connected 2 abstracted issues.

Previous developments bespeak that Kwon is serving a situation condemnation for passport fraud successful Montenegro. His condemnation is expected to past until Feb. 15, meaning that helium could beryllium released earlier his extradition for the upcoming trial.

The station SEC agrees to hold Terra proceedings truthful that Do Kwon tin be proceedings appeared archetypal connected CryptoSlate.