- Do Kwon’s status conference has been delayed from March to April after authorities found new evidence related to the case.
- His final trial is still scheduled for January 2026. In his recent appearance at the court, he pleaded not guilty to the fraud charges.
The “status conference” of Terraform Labs co-founder Do Kwon has been postponed from March 6 to April 10 after prosecutors found four additional terabytes of evidence. According to the report, the latest discovery includes data from four various electronic accounts and third-party entities. Meanwhile, 600GB of evidence, which contains the phone data, emails, and crypto transaction records of the defendant, was recently released.
Despite this delay, Kwon’s final trial is still scheduled for January 26, 2026 as confirmed in our recent blog post. Both parties are expected to submit pretrial motions by July 1 while the response deadline is fixed on August 11.
Kwon was arrested in Montenegro in March 2023 when his algorithmic stablecoin TerraClassicUSD (USTC) lost its peg to the US Dollar, falling from $1 to $0.01 within a short time. As mentioned in our previous news brief, this triggered a panic withdrawal, forcing a whopping sum of $60 billion out of the crypto market.
Initially, Kwon went into hiding in Singapore and Dubai and later attempted to travel with a fake Costa Rican passport. On December 31, 2024, he arrived in the US and made his initial appearance at the United States District Court for the Southern District of New York for an initial conference.
According to the details provided by the US Justice Department, Kwon pleaded not guilty to the fraud charges in his earlier appearance before the U.S. Magistrate Judge Robert Lehrburger in Manhattan, as covered in our previous report.
More About the Do Kwon’s Case
According to the Attorney for the United States, Daniel M. Gitner, Kwon has been indicted for misleading investors by illegally inflating the value of Terraform’s crypto.
A federal grand jury has indicted Do Kwon for misleading his investors to fraudulently inflate the value of Terraform’s cryptocurrencies and laundering the proceeds of his crimes. As we allege, this fraud and the crash of Terraform’s cryptocurrencies in May 2022 erased over $40 billion in investor assets, causing devastating losses to countless investors in the United States and around the world. Kwon will now face justice in a federal courtroom in Manhattan.
Attorney General Merrick B. Garland shed more light on the case, revealing that Kwon’s extradition was successfully secured despite his desperate attempt to cover his tracks. In this attempt, he allegedly laundered the proceeds of his schemes while trying to move to a country that did not have an extradition treaty with the US.
For FBI Assistant Director in Charge James E. Dennehy, the defendant falsely advertised the company’s blockchain products as reliable, decentralized, and effective, successfully manipulating the market.
For at least four years, Kwon allegedly played puppet master to maintain this crafted illusion and ensnare investors. The FBI will tirelessly work to apprehend any individual who engages in fraudulent financial practices, even those who flee internationally to escape prosecution.
