Terra's founder, Do Kwon, Scheduled for Trial in the Year 2026
Do Kwon, the founder of Terra, has been making headlines since his extradition from Montenegro to the United States in early 2025. Kwon is currently facing multiple fraud charges related to the collapse of Terra/Luna, which resulted in approximately $40 billion in losses.
In April 2024, a New York jury found Kwon liable for defrauding crypto investors, but the U.S. Securities and Exchange Commission (SEC) has contested what it considered a lenient jury decision. The SEC is now seeking summary judgment against Kwon and Terraform Labs, indicating ongoing litigation over the sufficiency of evidence and attempts to impose greater accountability.
Kwon faces eight charges, including multiple counts of securities and commodities fraud using electronic communications. If found guilty on all counts, he could face up to 130 years in prison. As of August 2025, he remains awaiting trial in the U.S., with no public trial dates announced yet.
The legal process is complex, with prosecutors reviewing terabytes of data related to the case, including information from Kwon's devices, online accounts, emails, trading history, and third-party testimony. Portions of the evidence will also need to be translated from Korean.
On January 2, 2025, an additional charge of money laundering was added to the case. Kwon, who is currently detained in a New York correctional facility, has pleaded not guilty to all charges.
The preliminary hearing for Kwon's case is scheduled for March 6, 2026. Judge Paul Engelmayer has set a one-week period for Kwon to request a different trial date. As of now, the trial date remains set for January 26, 2026.
The legal developments in this high-profile cryptocurrency case continue to evolve, with regulatory bodies actively investigating and court processes seeking to hold Kwon and associated parties accountable for the collapse of Terra/Luna.
In the ongoing legal battle, the SEC is seeking summary judgment against Kwon and Terraform Labs, signifying continued litigation over the sufficiency of evidence and attempts to impose greater accountability in the realm of general-news and finance. The business implications of this case extend beyond the cryptocurrency industry, as the outcomes could set precedents for crime-and-justice in the digital asset market.
