TL;DR
- Hearing Rescheduled: Do Kwon’s next court appearance has been postponed from March 6 to April 10 to allow for review of a massive new evidence trove.
- Explosive Evidence Uncovered: Prosecutors have added over 4 terabytes of new data—complementing 600GB already shared—to bolster the case.
- High-Stakes Legal Drama: The delay comes in the wake of Terra’s $60B collapse, with Do Kwon facing nine felony counts while his trial remains set for January 26, 2026.
The United States government’s case against former Terraform Labs CEO Do Kwon has been delayed, with the next court hearing rescheduled from March 6 to April 10. This decision was made by Manhattan federal judge Paul Engelmayer following a request from prosecutors who cited the need to review a substantial influx of new evidence. The delay allows both the prosecution and defense teams more time to process and analyze the additional materials.
Massive Evidence Trove
Prosecutors have uncovered over four terabytes of new evidence, which includes data obtained through warrants on various electronic accounts and documents from third-party organizations and individuals.
This newly acquired material adds to the approximately 600 gigabytes of data already provided to Kwon’s legal team. The existing evidence includes information from four of Kwon’s cell phones, emails from his personal and corporate accounts, and documents related to his extradition.
Background of the Case
The Terra ecosystem’s collapse in May 2022 resulted in an estimated $60 billion loss in market capitalization. The algorithmic stablecoin TerraClassicUSD (USTC) lost its dollar peg, plummeting below one cent, which led to a massive sell-off and the subsequent collapse of Terra Luna Classic (LUNC).
Following the collapse, Kwon, a South Korean national, traveled between Singapore and Dubai before being apprehended in Montenegro in March 2023. He was attempting to depart for Dubai using fraudulent travel documents.
Legal Proceedings and Charges
After serving a four-month prison term in Montenegro, Kwon was extradited to the United States in December 2024. He made his first appearance before a U.S. court on January 2, 2025, where he pleaded not guilty to nine felony counts related to alleged fraud.
Kwon’s trial is still set for January 26, 2026, even though his next hearing has been delayed. Pretrial motions must be submitted by July 1, and responses to those motions are due by August 11.
Settlement with the SEC
In June 2024, U.S. District Court Judge Jed Rakoff approved a settlement requiring Terraform Labs and Kwon to pay $4.5 billion in disgorgement and civil penalties. Additionally, they are permanently banned from engaging in any transactions involving “crypto asset securities,” including tokens within the Terra ecosystem. This settlement followed initial proposals from the SEC, which suggested a $5.3 billion penalty.
