Lawyers representing Do Kwon informed a US court on February 26 that the co-founder of Terraform Labs will be unable to attend the initial hearings of the SEC trial. Despite this, they did not request a postponement and stated that the trial could commence as planned on March 25 without Kwon's presence, as per court documents.

According to Kwon's attorney, David Patton, Kwon, who is currently in Montenegro, might not be extradited by the end of March due to unforeseen complications in the legal process. Patton explained that these complications have disrupted earlier expectations of a swift extradition.

Patton attributed the delay primarily to "unforeseen errors" made by the Montenegrin court overseeing Kwon's extradition case. The court filing also included a declaration from Kwon's Montenegrin defense attorney, Goran Rodic, outlining various issues with the high court's extradition ruling. Rodic criticized the decision made on February 21, alleging that it was based on inaccurate information regarding the timing of extradition requests by the US and South Korea. He also raised concerns about procedural errors during the legal proceedings.

Kwon was arrested by Montenegro in March 2023 for using falsified travel documents and has remained there since. His arrest occurred amid ongoing investigations following the collapse of Terra in May 2022, with Kwon's whereabouts previously unknown. Montenegro convicted him of possessing forged documents and sentenced him to four months in prison, while his extradition case has been ongoing concurrently.

The legal battle over Kwon's extradition involves both South Korea and the US, with both countries filing extradition requests with Montenegro following Kwon's arrest. The SEC's lawsuit against Kwon and Terraform, filed in February 2023, and subsequent criminal charges by the US Attorney's Office have implicated Kwon in allegations concerning billions in crypto asset securities fraud. In December 2023, Judge Jed Rakoff ruled in favor of the SEC, scheduling the trial for late March 25. Meanwhile, South Korea seeks his extradition to face trial in his home country, where some of his former associates, including Terra co-founder Daniel Shin, have already stood trial on fraud charges.