⚖️Do Kwon case enters pre-trial stage, Terra ecosystem allegations attract attention
There is new progress in the case of Do Kwon, co-founder of Terraform Labs. The pre-trial meeting is scheduled for March 6, 2025, and the latest progress will be announced before February 27.
The US court plans to hold a jury trial on January 26, 2026. Although the judge encouraged him to plead guilty in exchange for a reduced sentence, it now seems likely that the case will go to trial.
Federal prosecutors accuse the Terraform ecosystem of being built on deceptive practices and claim that Do Kwon misrepresented the stability of the algorithmic stablecoin TerraUSD. And the indictment lists his multiple fraud and securities violations.
Do Kwon's defense team believes that Terraform's products were legal and functionally consistent with the description before market sentiment changed. The trial is expected to last four to six weeks, during which basic issues of cryptocurrency classification under US law will also be resolved.
In addition, prosecutors claim that LUNA, the native token of the Terra ecosystem, is a security, a view that, if adopted, could have a significant impact on the entire cryptocurrency industry. However, defense attorneys have a different view.
The case involves 6TB of massive evidence from many sources, including audio recorded without Do Kwon's knowledge, which may raise some procedural issues. Despite the large amount of review materials, the judge still emphasized the need to ensure transparency and fairness in the industry.
Do Kwon is currently being held in Essex County Jail in New Jersey. His legal team also has to deal with the investigation and potential prosecution in South Korea, which is quite complicated. He was previously arrested in Montenegro for using a fake passport and was detained for nearly two years.
The United States and South Korea have been fighting over the extradition of Do Kwon. But at the end of December last year, the Minister of Justice of Montenegro finally decided to extradite him to the United States. In a court appearance on January 2 this year, Do Kwon pleaded not guilty to the charges of the collapse of the Terra ecosystem.
In short, this case not only concerns Do Kwon's personal fate, but will also have a profound impact on the legal status of cryptocurrency and the development of the industry, which deserves our continued attention.
What do you think of the latest developments in the Do Kwon case? Do you think this trial will affect the development of the cryptocurrency industry?
