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News

Do Kwon Trial Will Take Place in 2026 With Up to 130 Years in Prison

13 hours ago - Around 2 mins mins to read

Key Points:

  • Do Kwon trial, related to the $40 billion TerraUSD collapse, is scheduled for January 26, 2026, in New York, with a trial duration of 4-8 weeks.
  • The prosecution faces challenges in decrypting and translating six terabytes of evidence, including encrypted cell phone data, which could delay the process.
The criminal trial of Terraform Labs co-founder, Do Kwon will kick off on January 26, 2026, in the Southern District of New York.
Do Kwon Trial Will Take Place in 2026 With Up to 130 Years in Prison

Read more: Terraform Labs Founder Pleads Not Guilty in $40 Billion Crypto Scam

Do Kwon Trial to Take Place in New York January 2026

Kwon has been indicted on several serious charges, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering, relating to the 2022 catastrophic collapse of Terraform Labs’ cryptocurrency project, TerraUSD, which wiped out more than $40 billion and affected more than a million investors. Kwon has pleaded not guilty to the charges.

According to Bloomberg, the Do Kwon trial is expected to last anywhere between four and eight weeks. One of the biggest hurdles facing the prosecution, led by Jared Lenow, is the amount of evidence being reviewed. Montenegrin authorities turned over six terabytes of data after Kwon’s extradition in December 2024, including four encrypted cell phones.

The phone’s decryption and translation of Korean-language materials will take a lot of time, therefore making the discovery particularly complicated. U.S. District Judge Paul Engelmayer, who is presiding over the case, referred to the size of the evidence as “backing up a U-Haul” to the courthouse. The judge said he has never scheduled a trial over a year after an initial conference in his career.

Kwon Faces 130 Years in Prison Over TerraUSD Collapse

Terraform Labs co-founder’s lawyers, led by Michael Ferrara, could seek an earlier trial date in 2025, but for now, the Do Kwon trial is still scheduled for 2026. Besides the criminal charges, the SEC accused Kwon and Terraform Labs of fraud in 2023.

If convicted on all counts, Kwon faces a maximum sentence of 130 years in prison. The next major development comes on March 6, 2025, with a status conference as both sides work their way through the mountain of evidence.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.