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The criminal fraud trial of Do Kwon, co-founder and former CEO of Terraform Labs, is expected to take place in January 2026 in the United States.
This time included processing six terabytes of data during the investigation phase.
Mountain of Evidence Against Do Kwon
At one trial in Manhattan, prosecutors have highlighted significant delays due to difficulties in evaluating evidence. They are trying to decrypt four phones seized from Montenegrin authorities and translate key documents from Korean.
Chief prosecutor Jared Lenow explained that accessing encrypted information from these devices is the main barrier. The phones were surrendered when Kwon was extradited to the United States on December 31, 2024.
Last week, Do Kwon pleaded not guilty to the nine-count indictment. The charges include securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.
These allegations stem from the $40 billion collapse of the Terra/LUNA ecosystem in 2022.
Kwon’s extradition from Montenegro was completed on New Year’s Eve after Attorney General Bojan Bozovic approved the US request, based on legal criteria that prioritize US jurisdiction over South Korea.
Kwon’s trial is expected to be similar to that of FTX Sam Bankman-Fried. However, Kwon’s allegations are much more serious and the number of victims is much higher than the FTX collapse.
Bankman-Fried is currently serving a 25-year prison sentence. However, the Terraform Labs founder could face harsher judgment if convicted next year.
In June 2024, Terraform Labs reached a settlement with the SEC. The agreement requires the company to pay $4.47 billion in penalties, including $3.6 billion in profit forfeiture, $420 million in civil penalties and $467 million in pre-judgment interest.
Kwon was also ordered to pay more than $200 million personally, including $110 million in profit forfeiture, $80 million in civil penalties and $14.3 million in interest.
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