Do Kwon's trial has been set for January 2026 as prosecutors examine extensive evidence.

Key Takeaways

Do Kwon's trial on the collapse of TerraUSD is set for January 26, 2026, allowing time for evidence to be processed.
The lawsuit follows an SEC settlement of $4.5 billion and Kwon's liability in a civil fraud case.

Do Kwon's criminal trial over the $40 billion TerraUSD collapse will begin on January 26, 2026, in the Southern District of New York.

Prosecutors are reviewing six terabytes of evidence provided by Montenegrin authorities following his extradition in December 2024.

Chief prosecutor Jared Lenow called the discovery process “huge,” citing challenges in decrypting data and translating Korean materials.

Judge Paul Engelmayer compared the amount of data to “supporting U-Haul” in the courthouse.

The co-founder of Terraform Labs pleaded not guilty to a nine-count charge including securities fraud, wire fraud, commodity fraud, and money laundering conspiracy.

Prosecutors allege that Kwon misled investors about TerraUSD's algorithmic stability and manipulated markets. The fall of Terraform Labs in May 2022 triggered broader market volatility that contributed to FTX's fall.

The criminal proceedings follow Terraform Labs' bankruptcy and $4.5 billion SEC settlement in 2023.

A New York jury found Kwon and Terraform Labs liable in the SEC's civil fraud case in April 2024. The criminal trial is expected to last four to eight weeks.

Judge Engelmayer gave Kwon's defense team, led by Michael Ferrara, one week to consider an earlier 2025 trial date.

The next status conference is scheduled for March 6, 2025, at 11 a.m. eastern time. Kwon remains in custody without bail after spending nearly two years in Montenegrin custody.