Do Kwon’s fraud trial scheduled for 2026

The criminal prosecution of Terraform Labs founder Do Kwon is likely to take place in early 2026 as U.S. Attorney Jared Lenow predicts hurdles in gathering evidence.

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

At the heart of the long discovery process is the large amount of data that needs to be examined, according to attorney general Lenow, who cited six terabytes of material. The prosecution also expects delays in translating Kwon’s messages from Korean to English. Additionally, government investigators have yet to unlock Kwon’s four encrypted devices.

Do Kwon pleaded not guilty last week, pleading not guilty to nine charges, including securities fraud and money laundering conspiracies, tied to Terra’s $60 billion collapse in 2022. Federal prosecutors estimate that more than 1 million investors in the Terra/Luna ecosystem were affected by the malfunction.

A New York jury also found Kwon and Terraform Labs guilty in a civil fraud case filed by the U.S. Securities and Exchange Commission. The court ordered Terraform to terminate its business and pay a $4.5 billion fine.

Kwon financed $200 million out of his own pocket while the United States worked on his extradition from Montenegro, where he spent 22 months in custody.

Judge Engelmayer gave Kwon’s defense, led by Hecker Fink LLP attorney Michael Ferrara, one week to request an earlier trial date. The next hearing will be held on March 6.