Do Kwon’s US Trial Set for January 2026 Amidst Extensive Evidence Review

The highly anticipated trial of Terraform Labs co-founder Do Kwon has been scheduled for January 2026, following a recent court hearing in the Southern District of New York. Kwon, who was extradited to the US last week, faces multiple allegations related to the collapse of the Terra ecosystem, including fraud, wire fraud, and conspiracy.

Kwon Faces Multiple Fraud Charges

Kwon’s charges are tied to the collapse of TerraUSD, an algorithmic stablecoin designed to maintain a 1:1 peg with the US dollar. The coin’s failure in May 2022 resulted in a staggering $40 billion loss in value from the cryptocurrency market, leaving countless investors financially devastated. Prosecutors claim that Kwon misled investors about the stability of the coin and its ecosystem, contributing to the crisis.

Whales Accumulate Bitcoin Amidst Market Uncertainty

While Kwon’s trial is set to begin in 2026, the cryptocurrency market continues to navigate uncertainty. However, some investors are taking advantage of the current market conditions, with whales accumulating Bitcoin and other cryptocurrencies.

Trial Date Set Amidst Extensive Evidence Review

The trial’s start date was a key topic of discussion during a recent hearing, where lead prosecutor Jared Lenow informed District Judge Paul Engelmayer that the government needed time to access encrypted information seized from Kwon. Additionally, four cell phones provided by Montenegrin authorities when they extradited Kwon require unlocking, and the extracted material must be translated into English. The sheer volume of evidence, estimated to be around six terabytes, has led to a significant delay in the trial’s start date.

Judge Engelmayer acknowledged that both teams would need time to carry out the requisite evidentiary discovery, although he noted that scheduling the start date of a trial for over a year from the initial conference was “unprecedented” in his judicial career. Kwon’s team has been given one week to request an earlier date in 2025, should they wish.

Conclusion

In conclusion, Do Kwon’s US trial has been set for January 2026, following a recent court hearing in the Southern District of New York. Kwon faces multiple allegations related to the collapse of the Terra ecosystem, including fraud, wire fraud, and conspiracy. The trial’s start date has been delayed due to the extensive evidence review, which includes accessing encrypted information and unlocking cell phones. As the trial approaches, investors and market participants will be closely watching the developments in this high-profile case.

Source: Fullycrypto.com

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