Nearly four years after the shocking collapse of the Terra ecosystem, Do Kwon, the project's founder, is set to appear in court in the United States on January 26, 2026. This is an important development in a long-running legal battle involving more than $40 billion in losses for investors.
Trial Delayed Nearly Two Years
Federal Judge Paul Engelmayer announced the trial date on Wednesday, giving Do Kwon a week to request an accelerated schedule. He also stressed that he had never dealt with a case with such a long gap between prosecution and trial, but said this case required more time due to the sheer volume of evidence.
Transnational Legal Battle
Do Kwon was arrested in March 2023 after a 6-month manhunt. Extradited to the U.S. on New Year’s Eve this year, Kwon faces 9 counts of fraud, including two charges related to commodities and securities fraud.
Prosecutor Jared Lenow accused Do Kwon of orchestrating "a sophisticated fraud scheme" while promoting Terra as a "utopian" ecosystem that includes a stablecoin, savings bank, and payment system. However, according to the prosecutor, the core system of Terra did not operate as advertised, forcing Kwon to intervene to maintain the illusion of stability.
Defense Attorney Denies
Kwon's attorney, Mr. Michael Ferrara, denies the allegations that the Terra founder intentionally committed fraud. He also anticipates legal disputes before the trial, including examining the legality of the evidence collected by the Montenegrin authorities and debating the legal status of cryptocurrency.
Significant Legal Risks
If convicted on all charges, Do Kwon could face a maximum sentence of up to 130 years in prison, according to the U.S. Department of Justice.
Conclusion
The case of Do Kwon not only affects him personally but also serves as a significant test for legal regulation in the cryptocurrency sector. This prolonged legal battle will be the focal point of attention for investors and global regulators in the coming time.
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