Terra Co-Founder Do Kwon Faces April 10 Hearing Amid Terra Crash Legal Proceedings

April 10 is a pivotal date for investors in Terra Classic (LUNC) and TerraClassicUSD (USTC) as Terra co-founder Do Kwon is scheduled to appear for a conference hearing. This hearing could significantly influence the ongoing legal proceedings related to the 2022 Terra crash, potentially impacting not only Kwon’s legal fate but also the future trajectory of the Terra ecosystem.

The hearing, initially set for April 10, was adjourned by the New York District Court following a request from the US government. However, there are speculations that the proceedings might be delayed further as prosecutors continue to gather new evidence in the case.

In parallel, Terraform Labs (TFL) is actively processing claims from investors who incurred losses during the collapse of LUNA and UST. The firm has allocated up to $442 million for reimbursements. To qualify for compensation, users must provide proof of their token holdings during the crash, which typically involves obtaining transaction records from the exchange where they held LUNA or UST. Victims who received LUNA airdrops during the fallout are also eligible for compensation as they are considered impacted parties.

Investors are advised to start the claim process by contacting their respective exchanges to obtain account history or token balance confirmations from the time of the crash. These documents will support their compensation applications, and the claim process is open to all affected users, regardless of their trading platform.

Once these legal and financial issues are resolved, many in the community believe that the Terra Classic chain can move forward with renewed strength and clarity. The resolution of lawsuits and the settlement of losses could mark a turning point, providing the ecosystem with an opportunity to rebuild with less legal baggage and more community trust.

Meanwhile, the legal status of Do Kwon remains a focal point. Kwon, who was extradited from Montenegro in December, has pleaded not guilty to nine felony fraud charges related to the $60 billion collapse of Terra Luna. His trial is scheduled for January 26, 2026, with pretrial motions due by July 1.

Some in the crypto community are hopeful that Kwon’s legal situation could mirror that of BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed, who were granted clemency by Trump. This move is seen as more than just forgiveness; some believe it’s a sign that Trump wants to bring crypto closer to U.S. regulations. There are hopes that if Kwon is freed, he could help shape a new system with Trump, given his vision for digital assets aligns with where the U.S. might be headed.