Saturday, 20 April 2024

Crypto News

Trial against Terraform Labs and Do Kwon to begin in NYC in Kwon’s absence

Trial against Terraform Labs and Do Kwon to begin in NYC in Kwon’s absence

  • The trial against Terraform Labs and Do Kwon begins in NYC post-prison release.
  • SEC accuses Kwon of fraud over TerraUSD collapse, sparking $40B loss.
  • As the NYC trial unfolds, the US and South Korea are fighting for his extradition.

In a pivotal moment for the cryptocurrency world, the trial against Terraform Labs and its founder, Do Kwon, commences in New York City today.

Interestingly, the developments follow Kwon’s release from prison in Montenegrin, setting the stage for a legal battle that has captured international attention.

Do Kwon’s trial jury selection already underway

The trial, spearheaded by the United States Securities and Exchange Commission (SEC), revolves around allegations stemming from the dramatic collapse of Terraform Labs’ TerraUSD stablecoin in May 2022.

With losses exceeding $40 billion in market value, the SEC has accused Kwon of orchestrating a fraudulent scheme, manipulating the price of TerraUSD to deceive investors.

Kwon faces charges of violating registration and anti-fraud provisions under the Securities Act and the Exchange Act.

While civil trials typically result in financial penalties rather than imprisonment, the outcome of this case carries significant implications for cryptocurrency regulation.

US and South Korea locked in a legal battle for Do Kwon’s extradition

As the trial unfolds, both the US and South Korea are embroiled in a legal tug-of-war over Kwon’s extradition.

South Korea initiated the pursuit following Kwon’s alleged violation of national markets law, prompting a nearly year-long international manhunt.

Kwon’s eventual arrest in Montenegro in March 2023, on charges of document forgery, marked a turning point in the legal saga.

The arrest and subsequent imprisonment in Montenegro were followed by several legal battles as Do Kwon’s legal team fought his extradition out of the country. The public was treated to back and forth as the High Court issued extradition orders which were almost immediately overturned in the many appeal cases.

Do Kwon was finally released from prison over the weekend. However,…

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