Do Kwon Trial Will Have to Wait Another Year to Impeach the Fraud Kingpin

According to Bloomberg, the co-founder of Terraform Labs Do Kwon trial ties to the $40 billion collapse of TerraUSD will begin on January 26, 2026, in the Southern District of New York.

Do Kwon faces a nine-count indictment, including charges of securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.

Prosecutors allege he misled investors about the algorithmic stability of TerraUSD and manipulated markets, leading to the project’s dramatic failure in May 2022. The event also played a role in the collapse of FTX.

As the Do Kwon trial date approaches, the prosecution is grappling with a massive volume of evidence. Lead prosecutor Jared Lenow revealed that authorities are reviewing six terabytes of data provided by Montenegrin officials after Kwon’s extradition in December 2024.

The evidence includes encrypted material, which has proven challenging to access, and data extracted from four cell phones. Additionally, most of the evidence is in Korean, so translation is required before it can be presented in court.

Kwon has pleaded not guilty to the charges, and his legal team is preparing for a lengthy legal battle. In a related development, Terraform Labs settled in June 2024, agreeing to pay $4.47 billion to resolve a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) over the collapse.

However, Kwon’s criminal case will involve a higher burden of proof, as the standards for conviction are stricter than in civil trials. A New York jury also found him liable for fraud in an April 2024 civil trial, although this verdict does not influence the criminal proceedings.