TLDR
- Do Kwon’s US court hearing has been delayed from March 6 to April 10, 2025
- Prosecutors discovered an additional 4 terabytes of evidence that needs review
- 600 gigabytes of data from Kwon’s phones and emails have already been sent to the defense
- Despite the hearing delay, Kwon’s trial remains scheduled for January 26, 2026
- In April 2024, a jury found Kwon and Terraform Labs liable for fraud, resulting in a $4.5 billion fine
A Manhattan federal court judge has pushed back the next hearing in the case against former Terraform Labs CEO Do Kwon. Judge Paul Engelmayer moved the hearing from March 6 to April 10 after prosecutors requested more time to review an additional four terabytes of evidence.
The delay comes after prosecutors told the court they needed extra time to process new evidence. This evidence includes information from various electronic accounts and materials from third-party entities and individuals.
Prosecutors have already provided Kwon’s legal team with 600 gigabytes of data. This data includes information from four cellphones previously owned by Kwon and emails from his personal and business accounts.
Documents related to Kwon’s extradition have also been shared with the defense. Additional materials include FBI records from Montenegro, statements made to securities regulators, and crypto trading data.
The Terra Luna ecosystem collapsed in May 2022. This crash wiped out $60 billion in market value after the TerraClassicUSD stablecoin lost its peg and fell below $0.01.
Kwon, a South Korean national, traveled between Singapore and Dubai after Terra’s collapse. He eventually made his way to Montenegro where authorities arrested him.
Arrest With Fake Passport
His arrest in Montenegro occurred in March 2023. He was attempting to board a flight to Dubai with a fake Costa Rican passport, which resulted in a four-month prison sentence.
Following negotiations with Montenegrin authorities, Kwon was extradited to the United States in December 2024. He appeared before a US judge for the first time on January 2, 2025.
During his first US court appearance, Kwon pleaded not guilty to nine felony charges related to fraud. Despite the current hearing delay, his trial remains on schedule for January 26, 2026.
The court has ordered both parties to file pretrial motions by July 1, 2025. Responses to those motions must be submitted by August 11, 2025.
Victims of the Terraform Labs collapse have until April 30, 2025, to submit claims for financial losses. The case has already attracted attention due to the potential number of victims.
One Million Victims
Court filings suggest that the number of victims could exceed one million people. This makes the case one of the largest crypto fraud cases in history.
In April 2024, a jury found Do Kwon and Terraform Labs liable for defrauding investors in crypto asset securities. The SEC had argued that Kwon misrepresented the stability of the Terra ecosystem.
Following the jury’s verdict, the SEC requested $5.3 billion in disgorgement and civil penalties. The court ultimately imposed a $4.5 billion fine on both Kwon and Terraform Labs.
Federal prosecutors allege that Kwon knowingly misrepresented the stability of Terraform’s ecosystem. They claim this led to one of the most severe financial downturns in crypto history.
Kwon continues to deny any wrongdoing in the case. He claims that the market downturn was unforeseen rather than the result of fraudulent activity.
The postponement adds further complexity to an already high-profile legal battle. With the massive volume of discovery materials now under review, Kwon’s defense team faces a challenging process ahead of the 2026 trial.
