The SEC has concurred with postponing the trial of Terraform Labs and its former chief, as reported by Reuters on January 15. The regulator acknowledges the need for a "modest" delay, citing Terraform Labs’ co-founder Do Kwon's intention to be present at the trial. According to Reuters, Kwon has consented to extradition from Montenegro and is anticipated to arrive in the U.S. by mid-March. The original trial date of January 29 has been rescheduled to April 15.

This development follows Kwon's lawyers' request on January 11 to delay the trial to March 18, a date preceding the SEC's proposed extension. Kwon's legal representative assured that no further postponements would be sought if Kwon is unable to attend.

However, Judge Jed Rakoff, overseeing the case, still needs to approve this delay request. The SEC, in its latest court filing, opposed the idea of conducting separate trials for Terraform Labs and Kwon. The agency argues that the cases are nearly identical, and separate trials would entail repetitive testimonies. This court filing, referenced by Reuters, is not yet publicly accessible, and neither the SEC nor Terraform Labs has made any official statements regarding this issue.

In February 2023, the SEC accused Terraform Labs of executing a multi-billion dollar fraud. While the case continues, summary judgments issued in December favored both Terra and the SEC on different matters. Current reports suggest that Kwon is serving a jail term in Montenegro for passport fraud, expected to end on February 15, potentially allowing his release before the trial's extradition.

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