Terraform Labs founder Do Kwon’s criminal prosecution appears set for early 2026, as U.S. Attorney Jared Lenow anticipates roadblocks in evidence gathering.
District Judge Paul Engelmayer of the Southern District of New York called the scheduling “unprecedented” in his 15 years on the bench.
Central to the lengthy discovery period is a large volume of data to sift through, according to lead prosecutor Lenow, who cited six terabytes of materials. 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.
Do Kwon submitted a not-guilty plea last week, denying nine charges, including securities fraud and money laundering conspiracies tied to the $60 billion collapse of Terra in 2022. Federal prosecutors estimate that more than 1 million investors were affected by the Terra/Luna ecosystem failure.
A New York jury also found Kwon and Terraform Labs guilty in a civil fraud lawsuit filed by the U.S. Securities and Exchange Commission. The court ordered that Terraform should sunset its business and pay $4.5 billion in fines.
Kwon financed $200 million from his own pockets while the U.S. worked on his extradition from Montenegro, where he spent 22 months in custody.
Judge Engelmayer gave Kwon’s defense, led by Hecker Fink LLP lawyer Michael Ferrara, one week to request an earlier trial date. The next hearing is set for March 6.
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