Terraform and Do Kwon Reach Preliminary Settlement with SEC Over Fraud Case: Court Filing

Do #kwon , currently out on bail in Montenegro and awaiting extradition to either the U.S. or South Korea, and #Terraform Labs have reached a "settlement in principle" with the U.S. Securities and Exchange Commission (#SEC ) concerning a fraud case, according to a court filing on Thursday.
This development occurs less than two months after a civil fraud trial against Kwon and Terraform Labs began in New York. During the trial, the SEC sought a $5.3 billion penalty, the largest fine ever imposed on a cryptocurrency project. The court listing noted a May 29 telephone conference with all parties present, during which it was announced that a settlement had been reached in principle. Consequently, an oral argument scheduled for May 29 was canceled. The parties are required to submit the necessary documents supporting the settlement to Judge Jed S. Rakoff by June 12.
Kwon, co-founder of the algorithmic #Stablecoins Terra and its sister token $LUNA within the Terra ecosystem, faces additional criminal charges in New York and South Korea. The Terra ecosystem's collapse in May 2022 triggered a significant industry-wide contagion.
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Do Kwon, co-founder of Terraform Labs, is striving to delay his court proceedings in the United States while simultaneously resolving his legal issues in Montenegro to ensure his physical presence in the U.S. court.
Request for Postponement of Court Date
Do Kwon, the co-founder of #TerraformLabs , is requesting the federal court in the Southern District of New York to reschedule his court hearing to March due to complications related to his extradition from Montenegro.
 Kwon's Interest in Personal Attendance at the Court Process
In a letter dated January 11th, sent to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to personally attend the court process, scheduled for January 29th. They expressed the hope that Kwon would be able to return to the USA in time: "Mr. Kwon wants to be personally at the court. His lawyers hoped that the extradition process in Montenegro would proceed more quickly."
 

 
SEC Accusations and Connection with the Collapse of TerraUSD
In February 2023, the SEC accused Kwon of fraudulent activities, alleging that he was involved in organizing a large-scale crypto currency fraud. The accusation is related to the collapse of the #TerraUSD (USTC) stablecoin of TerraformLabs and its associated token #Terra (#LUNA ).
Response of Kwon's Legal Team to the Urgency of the Process
Kwon's legal team acknowledged the urgency of the court process but stated that Kwon could not attend this month. "We understand that the court cannot be indefinitely postponed, but moving the date to mid-March could realistically enable Mr. Kwon to attend the process," the letter stated.
New Decision of the Appeals Court in Montenegro
In December 2023, it was announced that the appellate court in Montenegro overturned the decision to extradite #kwon either to the USA or to South Korea. This was revealed just a week after it was announced that U.S. and South Korean authorities requested his detention for an additional two months after the end of his custody.
Efforts of the USA and South Korea for Kwon's Extradition
Both the USA and South Korea are seeking Kwon's extradition, with speculations in both countries about the potential outcome of his case.
Kwon's Arrest and Forged Documents
Kwon was arrested in Montenegro in March 2023 after he attempted to leave the country with forged travel documents.
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