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Do Kwon Trial for Terraform Labs Delayed Until January 2026

In an unprecedented move, the trial of Do Kwon and Terraform Labs has been delayed until January 2026. The reason? An overwhelming amount of evidence that even has the judge saying...

In a stunning development, the high-profile trial of Do Kwon, co-founder of the notorious Terraform Labs, has been postponed until January 2026. The unexpected delay came after a brief hearing on January 8th in Manhattan, where Judge Paul Engelmayer expressed astonishment at the sheer volume of evidence involved in the case.

An Unprecedented Case

The collapse of Terraform Labs and its associated cryptocurrencies, TerraUSD (UST) and Terra (LUNA), rocked the crypto world in 2022. The fallout left over 1 million victims in its wake and an estimated $40 billion in losses. Now, as the legal proceedings unfold, it’s becoming clear that this is no ordinary case.

The ministry expects additional delays due to difficulties accessing encrypted information and unlocking four cellphones provided by Montenegrin authorities during Mr. Kwon’s extradition on December 31. Many of the suspect’s documents will also need to be translated from Korean.

– Jared Lenow, lead prosecutor, US District Court Southern District of New York

A Trial Like No Other

Faced with these revelations, Judge Engelmayer quipped that they might need to “park a tractor-trailer in the courthouse” to facilitate the proceedings. His comments underscore the extraordinary nature of a case involving over a million alleged victims across the globe.

  • Do Kwon faces 9 charges, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering
  • If convicted on all counts, Kwon could face up to 130 years in prison under US sentencing guidelines

An Uncertain Timeline

Judge Engelmayer admitted that scheduling a trial to begin a full year after the initial hearing was “unprecedented” in his career. However, he left the door open for the defense to request an earlier date. The next hearing is set for March 6th, at which point more clarity on the timeline may emerge.

Do Kwon and Terraform Labs have already been found liable for fraud in a related civil case brought by the SEC. They were ordered to pay $5.3 billion in various penalties and restitution, with Kwon personally liable for $200 million.

The Road Ahead

As the criminal case against Do Kwon and Terraform Labs slowly grinds forward, the crypto community will be watching with bated breath. The outcome of this trial could have far-reaching implications, not just for those directly involved, but for the entire cryptocurrency ecosystem.

Key Takeaways

  • Do Kwon’s criminal trial has been delayed to January 2026 due to the immense volume of evidence
  • The case involves over 1 million alleged victims and an estimated $40 billion in losses
  • Kwon faces 9 charges and potentially 130 years in prison if convicted
  • The outcome of this unprecedented case could have significant ramifications for the crypto industry

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