Do Kwon, the once-celebrated founder of Terraform Labs, is about to face the music – well, at least in court. A landmark civil trial against him kicks off in Manhattan federal court this Monday, though Kwon himself won't be gracing the courtroom with his presence.

This trial stems from the spectacular downfall of TerraUSD, a "stablecoin" that was supposed to hold its value at $1. Instead, it plummeted in May 2022, wiping out over $40 billion and sending shockwaves through the entire crypto industry.

The US Securities and Exchange Commission (SEC) accuses Kwon of orchestrating a massive fraud. They claim Terraform Labs wasn't a decentralized utopia, but a carefully crafted scheme propped up by a manipulated "stablecoin."

Kwon is facing charges of violating securities laws, but this is a civil case. Unlike a criminal trial, it won't send him to prison. Instead, he could be looking at hefty fines or even an injunction preventing him from future crypto ventures.

Kwon's Extradition Tug-of-War

While the trial kicks off in the US, a legal battle for Kwon's actual location is playing out on the world stage. He was recently released from a Montenegrin prison after serving time for using a fake passport. However, his future remains uncertain.

Both the US and South Korea are vying to extradite Kwon. South Korea wants him to answer for violating their own market laws. The US, of course, wants him to face the SEC's charges. This international legal tug-of-war adds another layer of complexity to the entire saga.

The Terra Collapse: A Crypto Earthquake

The TerraUSD crash sent tremors through the entire crypto ecosystem. Some analysts believe it even triggered the downfall of major crypto exchange FTX. This trial is being closely watched by the crypto world, as its outcome could set a precedent for future regulations.

Will Kwon face justice? Will the SEC prove its case? Only time will tell. But one thing's for sure: the Terra saga continues...