⚡ Do Kwon to Stand Trial in the US in January 2026
posted 11 hr ago
Terraform Labs co-founder Do Kwon is set to face a criminal trial in New York in January 2026 over the $40 billion TerraUSD stablecoin collapse in 2022. The trial is expected to last between 4 and 8 weeks.
The timeline for the trial was announced after prosecutors and Kwon’s defense lawyers acknowledged the complexity of the case.
According to a report by Manhattan’s Southern District Court, the evidence is extensive, comprising “multiple terabytes of data.”
During the discovery phase, materials such as search warrants, personal email and Twitter accounts, four of his electronic devices, internal business records, other materials produced by Terraform or its former employees, trading records from crypto exchanges, blockchain data, and more will be examined.
Kwon’s legal troubles aren’t confined to the US. He also faces charges in South Korea, where Terraform Labs was originally based. Additionally, Kwon spent months evading authorities before being arrested in Montenegro in 2023 and subsequently extradited to the US.
Do Kwon’s first appearance in the US court was on January 2, 2025, when he pleaded not guilty to criminal fraud charges.
According to a report by Manhattan’s Southern District Court, the evidence is extensive, comprising “multiple terabytes of data.”
During the discovery phase, materials such as search warrants, personal email and Twitter accounts, four of his electronic devices, internal business records, other materials produced by Terraform or its former employees, trading records from crypto exchanges, blockchain data, and more will be examined.
Do Kwon’s trial requires an extensive data examination. Source: courtlistener.com
Prosecutors in the US allege that Kwon defrauded investors by making misleading claims about the stability of the stablecoin, which was pegged to the US dollar through an algorithmic mechanism. When the system failed, it triggered a market-wide panic that wiped out billions in value.
Kwon’s legal troubles aren’t confined to the US. He also faces charges in South Korea, where Terraform Labs was originally based. Additionally, Kwon spent months evading authorities before being arrested in Montenegro in 2023 and subsequently extradited to the US.
Do Kwon’s first appearance in the US court was on January 2, 2025, when he pleaded not guilty to criminal fraud charges.
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