Last week, the SEC’s request for the Southern District Court of New York to issue an order for Do Kwon’s extradition to the US was challenged by Kwon’s lawyers. The Terraform Labs founder’s lawyers stated that Do Kwon’s extradition to the US is not possible due to his continuous detention in Montenegro, and therefore it is impossible for him to participate in the court process in the US in this sense.

As it will be remembered, Do Kwon, who was arrested at the airport in Montenegro in March, was found guilty by the country’s court of entering and attempting to exit the country with forged documents and passports. Kwon, a South Korean citizen, was found to have a Costa Rican passport. Both the US and South Korea had applied for Kwon’s extradition.

The SEC sued Terraform Labs and Kwon over the LUNA token and algorithmic stablecoin UST, which collapsed in February. The agency accused Kwon and the company of raising billions of dollars from investors and selling and trading unregistered securities.