Key Takeaways
- Do Kwon’s trial over TerraUSD collapse is set for January 26, 2026, allowing time for evidence processing.
- The trial follows a $4.5 billion SEC settlement and Kwon’s liability in a civil fraud case.
Share this article
Do Kwon’s criminal trial over the $40 billion TerraUSD collapse will begin on January 26, 2026, in the Southern District of New York.
Prosecutors are reviewing six terabytes of evidence provided by Montenegrin authorities after his December 2024 extradition.
Lead prosecutor Jared Lenow called the discovery process “massive,” citing challenges in decrypting data and translating Korean materials.
Judge Paul Engelmayer likened the data volume to “backing up a U-Haul” to the courthouse.
The Terraform Labs co-founder pleaded not guilty to a nine-count indictment including securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.
Prosecutors allege Kwon deceived investors about TerraUSD’s algorithmic stability and manipulated markets. The May 2022 collapse of Terraform Labs triggered broader market instability that contributed to FTX’s downfall.
The criminal proceedings follow Terraform Labs’ bankruptcy and a $4.5 billion SEC settlement in 2023.
A New York jury found Kwon and Terraform Labs liable in the SEC’s civil fraud case in April 2024. The criminal trial is expected to last four to eight weeks.
Judge Engelmayer gave Kwon’s defense team, led by Michael Ferrara, one week to consider an earlier 2025 trial date.
The next status conference is set for March 6, 2025, at 11 a.m. eastern time. Kwon remains in detention without bail after spending nearly two years in Montenegrin custody.
Share this article