Do Kwon, co-founder of Terraform Labs, is set to face trial in the US in January 2026 on charges of fraud related to the TerraUSD stablecoin collapse.
Arrest and Charges
Kwon was arrested in March 2023 in Montenegro and extradited to the US, where he faces serious charges related to the collapse of the TerraUSD stablecoin and its associated crypto, LUNA, which shocked the crypto world.
Legal Proceedings and Decisions
US District Judge in New York scheduled the trial for January 2026, expected to last four to eight weeks. Terraform Labs settled with the SEC for $4.47 billion in June 2023 over the collapse. Kwon was previously convicted of civil fraud, but criminal fraud charges require a higher standard of proof.
Current Situation and Upcoming Hearings
Do Kwon has been in custody without bail for more than two years and will have to wait until 2026 for the trial. The next court status hearing is set for March 6, 2025. Prosecutors noted that case discovery is complicated by encrypted data and the need to translate materials from Korean.
The trial of Do Kwon continues to draw attention due to the significant financial losses from the TerraUSD collapse. The upcoming lengthy trial could have major implications for the cryptocurrency market.
