Terraform Labs’ Do Kwon Faces Delayed Trial, Defense Needs More Time to Review Evidence

The court hearings regarding Do Kwon have been postponed by one month because the U.S. government claims that the defense team needs more time to review a significant 4TB of data. Because of his involvement in the catastrophic collapse of the TerraUSD (UST) stablecoin and its twin cryptocurrency, Luna, in 2022, Do Kwon, a co-founder of Terraform Labs, was targeted for extradition.

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Nausheen Thusoo
Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

Do Kwon, the founder of Terraform Labs, will face a delay in his trial  by a month. According to official documents, due to the U.S. government’s assertion that the defense team needs more time to examine a substantial 4TB of data, the court hearings involving Do Kwon, have been delayed by one month.

The status meeting, when lawyers discuss the case’s progress and possible options, was originally set for March 10 but has been delayed.

Court Delays Terraform Labs Founder Do Kwon’s Case

The government has requested in writing that the meeting be postponed until April 10 so that the defense may review the important material, and the New York District Court granted the request.

According to the U.S. government, on February 27, it gave the defense 600GB of evidence, including Do Kwon’s emails, phone records, and cryptocurrency transaction logs.

Additionally, by the end of the next week, the government expects to present another 4TB of evidence to the defense. The ultimate trial is still scheduled for January 26, 2026, according to the court’s order postponing the meeting.

Also Read: Montenegro’s Constitutional Court Suspends Extradition Of TerraLabs Founder Do Kwon

Do Kwon’s Charges: What Do They Include?

Do Kwon, a co-founder of Terraform Labs, was subject to extradition because of his role in the disastrous 2022 collapse of the TerraUSD (UST) stablecoin and its sibling cryptocurrency, Luna.

The fall devastated investors and caused widespread panic in the bitcoin market, resulting in a loss of billions of dollars. Kwon was charged with fraud, manipulating the market, and operating a criminal operation that deceived regulators and investors over the soundness of Luna and TerraUSD.

Kwon left South Korea after the collapse, which led to a global manhunt. In March 2023, he tried to travel using forged passports and was caught in Montenegro. Citing accusations of wire fraud, securities fraud, and conspiracy to mislead investors, the U.S. government requested his extradition.

Market Impact of Terraform Fall Out

The significant financial ramifications of the 2022 collapse of Terraform Labs’ TerraUSD (UST) stablecoin and Luna token made Do Kwon’s argument widely known.

Millions of investors worldwide were impacted by the crash, which destroyed billions of dollars in value. As the co-founder, Kwon was viewed as the crises’ spokesperson, and his claimed role in deceiving investors and controlling the market caused indignation.

One of the most well-known cases in cryptocurrency history, his subsequent flight from South Korea and the international manhunt heightened the drama and attracted the attention of authorities, the media, and the international cryptocurrency community.

Also Read: South Korea’s Supreme Court Rules Terra Luna Is Not A Financial Investment Product, Details Inside

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