Michaela
Judge Paul A. Engelmayer has set the criminal fraud trial for Do Kwon, the former CEO of Terraform Labs, for January 26, 2026 to allow time for processing six terabytes of discovery data.
At a January 8 conference in Manhattan, prosecutors highlighted delays in the case, citing difficulties in reviewing evidence. They are working to decrypt four phones obtained from Montenegrin authorities and translate important documents from Korean.
Prosecutors have outlined their discovery plans, which include requesting search warrants for Kwon’s email and X account.
During the collapse of the Terra ecosystem in 2022, Kwon frequently posted on X (formerly Twitter), with his final one coming just before his arrest in Montenegro in 2023. Prosecutors also revealed that, in addition to examining Kwon’s social media account, they would review trading records and other documents from cryptocurrency exchanges.
According to Inner City Press, during the conference held by Judge Engelmayer, it was revealed that there were also recordings of Kwon made “without his knowledge, not at the direction of the government” that may be included in the discovery process. “Some but not all” of these recordings were used as evidence in the U.S. Securities and Exchange Commission’s (SEC) civil case against Do Kwon and Terraform, which concluded with both parties being found liable for fraud.
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Kwon’s extradition from Montenegro was finalized on New Year’s Eve, following approval from Justice Minister Bojan Bozovic. The decision was made based on legal grounds that prioritized U.S. jurisdiction over South Korea.
U.S. prosecutors originally charged Do Kwon with eight counts in March 2023. However, in 2024, they filed a sealed superseding indictment against the Terraform co-founder, adding a ninth count: conspiracy to commit money laundering.
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The Do Kwon case has drawn comparisons to that of FTX’s Sam Bankman-Fried, with expectations that his trial will follow a similar format. However, the charges against Kwon are more serious, and the number of victims impacted by his alleged actions far exceeds those affected by the FTX collapse.
If the Terraform Labs co-founder is convicted next year, he could face a far more severe sentence than Bankman-Fried’s 25-year prison term.
Read More
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
