Coinspeaker Do Kwon’s Trial Pushed to 2026 Amid Evidence Complexity
Terraform Labs co-founder and former CEO Do Kwon is set to face trial in the United States next year, as reported by CoinDesk. The Manhattan court recently decided to push the trial date forward. This is to give prosecutors and defense attorneys time to review the evidence against the defendant.
This evidence is shockingly a six-terabyte trove of data, which includes encrypted data and documents in Kwon’s native Korean. This marks the latest chapter surrounding the massive $40 billion Terra/LUNA ecosystem collapse in 2022.
The Weight of Evidence: A Six-Terabyte Challenge
At a recent hearing in Manhattan, lead prosecutor Jared Lenow highlighted the challenges ahead. The US government has been handed four cell phones from Montenegrin authorities containing crucial encrypted information.
Unlocking these phones and translating the data will take significant time and effort. Adding to the complexity, much of the extracted data requires translation from Kwon’s native Korean. Judge Paul Engelmayer, who presides over the case, also acknowledged the immense scale of the discovery process.
The judge added that scheduling the trial over a year after the initial conference has never happened in his career. However, the complexity of the Kwon’s case demands it. However, Judge Engelmayer gave Kwon’s attorney, Michael Ferrara, the option of requesting an earlier trial date in 2025.
The defendant was given one week to respond. Meanwhile, Do Kwon has been held without bail in a New York correctional facility since his extradition from Montenegro.
The Legal Battle Against Do Kwon: Multiple Fraud Charges
Kwon faces a nine-count indictment, including securities fraud, wire fraud, commodities fraud, and money laundering conspiracy. These charges stemmed from allegations that he misled investors and manipulated the market.
These illicit activities led to the catastrophic downfall of Terra/LUNA in 2022, with over $40 billion in losses incurred from over 1 million victims. Meanwhile, he had pleaded not guilty to these allegations.
The collapse of Terraform Labs had a huge impact on the crypto world. It made investors lose trust and drew attention from regulators around the globe. In 2023, the US Securities and Exchange Commission (SEC) accused Kwon and Terraform Labs of fraud.
A New York jury found them guilty, leading to a $4.5 billion penalty. After this fine, Terraform Labs went bankrupt, ending what was once a promising blockchain project. The next major update in this case will come on March 6, 2025, during a status conference. Until then, both sides will work to sort through the evidence.
The rise and dramatic fall of Terra has become a warning to others. With Kwon’s trial on the horizon, the world watches as the once-celebrated blockchain visionary stands to answer for his actions in a US courtroom.
This trial could set a precedent for how the legal system handles large-scale crypto fraud cases in the future.
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Do Kwon’s Trial Pushed to 2026 Amid Evidence Complexity
