Do Kwon’s fraud trial scheduled for 2026

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It looks like the legal proceedings against the founder of Terraform Labs, Do Kwon, may start around early 2026, according to U.S. Attorney Jared Lenow. He predicts that there could be challenges when it comes to collecting necessary evidence for the case.

In a span of fifteen years on the bench, District Judge Paul Engelmayer from the Southern District of New York found the scheduling to be remarkably unique.

At the heart of the extensive investigation phase lies a substantial amount of data that needs to be sorted out, as stated by lead prosecutor Lenow, who pointed out six terabytes worth of materials. The prosecution also expects delays due to translating Kwon’s Korean messages into English. Furthermore, government investigators are yet to decrypt four devices belonging to Kwon that are currently encrypted.

Last week, Do Kwon filed a plea of innocence against nine accusations, which include allegations of securities fraud and money laundering conspiracies linked to the fall of Terra in 2022. These charges also encompass broader conspiracies. Federal authorities believe that over a million investors were impacted by the collapse of the Terra/Luna ecosystem.

In a civil fraud lawsuit brought by the U.S. Securities and Exchange Commission, a New York jury likewise convicted Kwon and Terraform Labs. The court mandated that Terraform Labs winds down its operations and pays a fine of $4.5 billion.

Kwon personally funded two hundred million dollars during the process of his extradition from Montenegro, where he was detained for twenty-two months.

As a researcher reporting this event, I’m sharing that Judge Engelmayer has granted a week’s extension for the legal team from Hecker Fink LLP, led by Michael Ferrara, to petition for an earlier trial date in the Kwon case. The next court hearing is scheduled for March 6th.

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2025-01-08 23:47