TLDR
- The court date for Do Kwon, originally set for March 6, has now been rescheduled to April 10, 2025.
- Legal officials have unearthed an astonishing four terabytes of additional evidence requiring careful examination.
- A sizeable chunk of data, measuring 600 gigabytes, obtained from Kwon’s mobile devices and email correspondences, has already been shared with his defense.
- Even though the hearing is on hold, Kwon’s formal trial is still slated for January 26, 2026.
- Back in April 2024, the jury held Kwon and Terraform Labs accountable for deceitful practices, slapping them with a hefty $4.5 billion fine.
In a recent move, the Manhattan federal judge postponed the hearing related to the allegations against ex-CEO of Terraform Labs, Do Kwon. Judge Paul Engelmayer decided to reschedule the hearing, moving it from the initial date of March 6 to April 10, after receiving a request for extra scrutiny time from prosecutors. This shift in the court schedule stems from prosecutors' insistence on needing more time. They argue that the four terabytes of newfound evidence demand more thorough analysis before proceeding.
Prosecutors made it clear they would require additional time to process the fresh evidence, incorporating materials from several electronic streams and third-party archives.
Kwon’s legal representation has been granted access to 600 gigabytes of information, which comprises data from former cellphones and both private and business emails.
Documents regarding Kwon's extradition process have also been handed over to the defense team. They feature FBI files from Montenegro, testimonies to financial overseers, and digital currency exchange records.
The tragic collapse of the Terra Luna ecosystem took place in May 2022, destroying $60 billion in market capitalization following the devaluation of the TerraClassicUSD stablecoin to below one cent.
After the crash, Kwon, a South Korean citizen, traveled to various locations, including Singapore and Dubai, until he landed in Montenegro, where he was apprehended.
Arrest With Fake Passport
In March 2023, Kwon faced arrest in Montenegro. He tried to travel to Dubai with a counterfeit Costa Rican passport, leading to a four-month imprisonment. After discussions with Montenegrin officials, Kwon was extradited to the US in December 2024 and first appeared in a US court on January 2, 2025.
During his inaugural court session in the US, Kwon declared his innocence against nine serious fraud charges. Despite the delay, his court trial is anticipated for January 26, 2026.
Court orders have obliged both parties to put forth pre-trial motions by July 1, 2025, with responses required by August 11, 2025.
Individuals affected by the downfall of Terraform Labs have until April 30, 2025, to file claims for their financial damages, with the case drawing attention due to an enormous potential number of affected parties.
Judicial reports estimate that the victim count could swell beyond a million people, marking this as one of the most extensive fraud investigations tied to cryptocurrency.
One Million Victims
In April 2024, a jury found Kwon and the company guilty of misleading crypto investors, following claims by the SEC that Kwon had falsely assured the durability of the Terra ecosystem.
Subsequent to the jury's decision, the SEC proposed $5.3 billion for recovery and sanctions, ultimately leading to a $4.5 billion penalty against Kwon and his company.
Federal attorneys argue that Kwon deliberately misled about the ecosystem's stability, sparking a serious financial crisis in the world of cryptocurrency.
Kwon remains firm in denying these accusations, asserting that the market's downfall was unforeseen rather than fraudulent.
The pushback in court dates adds layers of complexity to an already high-stakes legal drama. As Kwon's team gears up for the 2026 trial, they face a monumental task given the sheer volume of evidence to manage.
Overseeing Blockonomi and pioneering Kooc Media in the UK, the Editor-in-Chief champions open-source, blockchain, and equitable digital spaces for everyone.
