Terraform Labs Founder Do Kwon Faces Delayed Trial Amid New Evidence Surfacing Stocks Plunge
1min read Do kwon, the founder of Terraform Labs, remains in US custody as his legal battle takes another turn. A federal judge in Manhattan has postponed his trial to allow prosecutors time to review a substantial volume of newly discovered evidence. Originally set for March 6, the hearing has been rescheduled to April 10, as confirmed by Judge Paul Engelmayer on March 3. This decision follows a February 27 request from US prosecutors who revealed they had uncovered approximately four terabytes of additional material relevant to the case.
The newly obtained evidence reportedly includes documents from multiple electronic accounts seized through search warrants, as well as corporate and third-party records. According to prosecutors, Do Kwon’s legal team has already received around 600 gigabytes of data. This includes information extracted from four of his mobile devices along with emails from both personal and corporate accounts. Further disclosures include details on Kwon’s extradition, evidence collected by the FBI in Montenegro, statements made to the US Securities and Exchange Commission, and trading activity records related to digital assets.
Do Kwon’s legal troubles stem from the catastrophic collapse of the Terra ecosystem in May 2022. His algorithmic stablecoin Terra Classic USD (USTC) lost its peg to the US dollar, plummeting to below $0.05. This triggered a broader market meltdown, wiping out approximately $60 billion in market capitalization. The failure of USTC also had a domino effect on its sister token Terra Luna Classic (LUNC), which saw its value crash dramatically.
Following the collapse, Kwon spent months evading authorities, traveling between Singapore and Dubai, before ultimately being arrested in Montenegro in March 2023. He was caught attempting to board a flight to Dubai using falsified travel documents. After serving a four-month sentence, he was extradited to the US in December 2023. Kwon made his first US court appearance on January 2, 2024, where he pleaded not guilty to nine criminal charges, including multiple counts of financial fraud.
Although his upcoming hearing has been delayed, the court has kept his trial date set for January 26, 2026. The prosecution must submit pre-trial motions by July 1, while the court is expected to respond by August 11. In a separate but related legal battle, Terra 