The world’s largest cryptocurrency fraudster tries to deceive US authorities

Terraform Labs co-founder Do Kwon has asked the U.S. District Court for the Southern District of New York to postpone his trial date to March, citing extradition issues in Montenegro as the reason for the postponement.

In a letter dated January 11, addressed to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to attend the trial, which is scheduled for January 29. However, they hoped that Kwon would be able to return to the United States by then:

«Mr. Kwon wants to be present at his trial. The lawyers hoped that the extradition procedure in Montenegro would go faster than it is,» the lawyers said.

In February 2023, the Securities and Exchange Commission (SEC) filed fraud charges against Kwon, accusing him of participating in the organization of a multi-billion dollar cryptocurrency fraud.

The charges were related to the collapse of the Terraform Labs stablecoin TerraUSD (USTC) and the related Terra token (LUNA).

While recognizing the urgency of the trial, Kwon’s legal team indicated that the court date did not allow their client to attend: «We understand that the court cannot postpone the trial indefinitely, but a postponement until mid-March would provide a realistic opportunity for Mr. Kwon to attend,» the letter reads.

As a reminder, in December 2023, the Montenegrin Court of Appeal ruled to annul the decision of the Podgorica High Court, which approved Kwon’s extradition to either the United States or South Korea.

Do Kwon is being somewhat disingenuous when he says he wants to be present at the trial, as it was his team that filed the extradition appeal. Most likely, the Korean’s lawyers simply want to delay the trial. Both the United States and South Korea are seeking Kwon’s extradition. There has been speculation that Kwon could be convicted on multiple charges in both countries.

Kwon was arrested in Montenegro in March 2023 after attempting to leave the country using a fake passport.