Do Kwon’s fraud trial scheduled for 2026

Criminal charges against Terraform Labs founder Do Kwon appear set for early 2026, as U.S. Attorney Jared Lenow foresees obstacles to evidence collection.

District Judge Paul Engelmayer of the Southern District of New York called the timeline “unprecedented” in his 15 years on the bench.

At the heart of the lengthy discovery period is a large volume of data to review, according to lead prosecutor Lenow, who cited six terabytes of documents. The prosecution also anticipates delays in translating Kwon’s messages from Korean to English. Additionally, government investigators have yet to unlock four of Kwon’s encrypted devices.

In Kwon submitted a not guilty plea last week, denying nine charges including securities fraud and money laundering conspiracy related to Terra’s $60 billion collapse in 2022. Federal prosecutors estimate that more than A million investors were affected by the failure of the Terra/Luna ecosystem.

A New York jury also found Kwon and Terraform Labs guilty in a civil fraud lawsuit brought by the U.S. Securities and Exchange Commission. The court ordered that Terraform should cease operations and pay $4.5 billion in fines.

Kwon financed $200 million from his own pockets while the United States worked on his own projects. extradition from Montenegro, where he spent 22 months in detention.

Judge Engelmayer gave Kwon’s defense, led by Hecker Fink LLP attorney Michael Ferrara, a week. request an earlier trial date. The next hearing is set for March 6.