Terraform Labs vs. SEC Civil Battle Proceeds Despite Do Kwon's Absence

In a surprising turn of events, the civil battle between Terraform Labs and the SEC has commenced, even in the absence of Do Kwon. Kwon's extradition to the US was halted by the Montenegro court of appeal, affirming the decision to extradite him to South Korea, dealing a blow to the US, which had also sought his extradition.

Despite Kwon's absence, the Manhattan court proceeded with scheduled hearings. Both Terra and the SEC were well-prepared for the trial, according to Zack Guzman. Guzman noted a stark contrast between this trial and the previous one involving SBF, highlighting the seriousness with which both parties approached the proceedings.

Judge Rakoff set the ground rules for the trial, allowing only four-word objections and anticipating the trial to last two weeks. Kwon's detention in Montenegro was a topic of discussion, with the defense stating that he was serving time for a forged passport.

Jury selection began, with the first jury consisting of six women and three men. After a brief moment of light humor, the court delved into the core issues of the case. Judge Rakoff emphasized that the case revolves around two key claims:

1. Did Terraform Labs misrepresent Chai using Terra?
2. Did Terraform Labs mislead on why UST could be pegged to $1?

Each party was given 30 minutes to present their arguments. The SEC argued that the case was about fraud, not technology, echoing their stance in the SBF case. The defense referenced Kwon's previous statement that "Failure doesn't equal Fraud" and accused the SEC of selectively using facts.

The trial is set to continue over the next two weeks, with many in the crypto community hoping for another loss for the SEC. Zack Guzman's Twitter updates on the trial have generated interest, with many requesting more detailed updates.

As the trial progresses without Do Kwon's presence, it remains to be seen how the case will unfold.