The highly anticipated criminal fraud trial of Do Kwon, co-founder and former CEO of Terraform Labs, has been tentatively scheduled to begin in January 2026. This timeline allows ample time for both prosecutors and Kwon’s defense team to thoroughly examine the extensive six-terabyte volume of evidence expected to emerge during the discovery phase.
During a recent court hearing in Manhattan, lead prosecutor Jared Lenow highlighted significant hurdles in accessing encrypted data and unlocking four cell phones provided by Montenegrin authorities following Kwon's extradition to the U.S. on December 31st. Additionally, the government will need to translate data extracted from Kwon’s native Korean, further complicating the process. District Judge Paul Engelmayer humorously acknowledged the magnitude of the task, joking that they would be "backing up a U-Haul" to handle the evidence.
In response to the delayed timeline, Judge Engelmayer also addressed Kwon’s defense team, asking whether they preferred an earlier trial date in 2025, offering them a one-week window to request a faster proceeding. Currently held without bail in a U.S. correctional facility, Kwon has been in custody for 22 months after his detention in Montenegro. He has pleaded not guilty to the charges brought against him, which include securities fraud, wire fraud, and money laundering conspiracy, all linked to the catastrophic collapse of the Terra/LUNA ecosystem in 2022.
Beyond the criminal trial, Kwon and Terraform Labs have already faced civil fraud charges from the U.S. Securities and Exchange Commission (SEC), resulting in a guilty verdict and a staggering $4.5 billion penalty, with Kwon personally ordered to pay $200 million. Terraform Labs filed for bankruptcy shortly thereafter. The next update on the case is slated for a status conference on March 6 at 11 a.m. ET.
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