Do Kwon’s U.S. Fraud Trial Scheduled for 2026 Amid Evidence Access Challenges

• Do Kwon’s fraud trial faces delays to January 2026 due to complex evidence review, including six terabytes of data and encrypted devices.
• The trial could set a precedent for crypto fraud cases, with significant reliance on encrypted evidence from the TerraUSD collapse.

Do Kwon, the co-founder of Terraform Labs, is set to face trial for criminal fraud charges in January 2026. A Manhattan court hearing revealed that the delay is due to the immense task of reviewing six terabytes of evidence.

This development, as discussed recently in a CNF post, follows Kwon pleading not guilty to fraud charges linked to the $40 billion TerraUSD collapse, which impacted over 1 million victims globally.

Prosecutors are also grappling with encrypted cell phones provided by Montenegrin authorities during Kwon’s extradition. These devices could contain crucial data on financial transactions and communications related to the 2022 Terra/LUNA collapse. Translating this evidence from Korean to English further complicates the process.

Looking Ahead: Status Conferences and Global Impact

According to a recent Bloomberg report and a tweet by Jon Morgan, the next status conference is scheduled for March 6, 2025. Updates on the evidence review and potential adjustments to the trial timeline will be discussed. U.S. prosecutors have emphasized the global fallout from Terra’s collapse, which affected over a million investors worldwide.

Just In: Terraform Co-Founder Do Kwon’s Trial To Begin In 2026https://t.co/qnR9dkxpuN

— John Morgan (@johnmorganFL) January 8, 2025

Judge Paul Engelmayer acknowledged the unusually long lead-up to the trial but emphasized the importance of thoroughly analyzing the evidence. Kwon’s case could set a precedent for handling high-profile crypto fraud cases, with the outcome heavily reliant on the encrypted evidence under review.

Legal Troubles Escalate for Terraform Labs’ Co-Founder and Terra Classic Market

Following his extradition from Montenegro in late 2024, Kwon has previously pleaded not guilty to nine charges, including securities fraud, wire fraud, and conspiracy to commit money laundering. This legal battle stems from the Terra/LUNA ecosystem’s collapse, which prompted global investigations and led to civil fraud charges by the U.S. SEC in 2023.

A jury found Terraform Labs guilty, imposing $4.5 billion in penalties, including $200 million owed by Kwon. Amid these developments, Terraform Labs declared bankruptcy, further complicating Kwon’s legal challenges.

Regarding Terra Classic (LUNC), at the time of writing, Coin Market Data shows that LUNC is trading at $0.0001035, reflecting a 0.76% decline in the past 24 hours and an 8.81% decrease over the past week.

[mcrypto id=”431029″]