SEC agrees to postpone lawsuit against Terra

The lawsuit against Terra founder Do Kwon and development studio Terraform Labs has been postponed. The SEC has now agreed.

The trial against Terraform Labs, the operators of the collapsed Terra ecosystem, was originally scheduled to begin on Jan. 29. The U.S. Securities and Exchange Commission (SEC) has now agreed to postpone.

This was reported by Reuters news agency, relying on a non-public court document.

The new date has been set for April 15.

One of the reasons for the postponement is that former CEO Do Kwon has agreed to attend the trial. His lawyers had earlier suggested postponement.

Terra's ecosystem collapsed in May 2022. Both the stablecoin UST as the native token LUNA became almost worthless within a few days. In February 2023 complained the SEC Terraform Labs and Do Kwon charged with fraud.

The South Korean is currently in custody in Montenegro. He is awaiting extradition to the US.