In a recent update, the co-founder of Terraforms, Do Kwon, has opposed the Securities and Exchange Commission’s (SEC) request to extradite him to the US for further questioning regarding the crashing of his great invention, “the Terra ecosystem.”
The troubled crypto entrepreneur presented his request before a federal court in Montenegro. In a subsequent filing, the lawyers representing Do Kwon outlined why their client should not proceed to further questioning in the US.
Do Kwon Opposes SEC Request
The lawyer described the SEC request as impossible, guided by the existing rules in Montenegro. Referring to a statement issued by the Montenegro Basic Court, the co-founder of Terra Ecosystem was detained in the region with neither a scheduled date for release nor an extradition date.
Citing the “right to due process” provision in US law, the lawyers noted that formal writing in response to the SEC question would have inconsistency and bias. Backed by their defensive statement, the lawyers claimed their client did not oppose extradition.
Instead, he demanded for fairness and justice. Guided by due process rights, the lawyers representing the crypto investor opted to be questioned in Montenegro, where he is undergoing legal proceedings.
SEC Demands to Question Do Kwon
Earlier, the SEC had scheduled to extradite Do Kwon before October 13. The SEC timelines collided with the Montenegrin trial day for a 32-year-old investor.
The Montenegrin court had scheduled October 13 or 26 to ask questions on behalf of the SEC. After judicial consideration, the SEC reconsidered its decision concerning the Do Kwon case last week.
In the report, the SEC stated the involvement of the Montenegrin court in the anticipated questioning may lead to inadequate data collection. Therefore, to support the legal process, the SEC rescheduled the cut-off date to next month to allow the regulators to facilitate the extradition of Do Kwon.
Terraforms CEO Battles Legal Charges
In February, the SEC accused Do Kwon of engaging in a fraudulent scheme involving stablecoins and crypto assets, resulting in a loss of over $40 million. The SEC claimed that Do Kwon hyped through touted and marketed his stablecoin and other assets to attract large customers.
The market regulators stated that Do Kwon misled the investors to venture in “unstable stablecoin” that exposed many to the loss of substantial assets. Also, the US Department of Justice filed a lawsuit in March against Do Kwon. The DOJ claimed that the South Korean investor engaged in fraud.
Reportedly, Do Kwon was arrested in March this year with fake travel documents in Montenegro. During his arrest, the entrepreneur was accompanied by Han Chang-Joon at the airport checkpoint, attempting to board a flight to Dubai. The report indicated that after the fallout of the Terra ecosystem that created a domino effect on the entire crypto market, Do Kwon has been in a hideout in Serbia.