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Ex-Terraform Labs CEO Do Kwon to face fraud trial in 2026

United States District Judge Paul Engelmayer set the trial date for Do Kwon, founder of Terraform Labs, for January 26, 2026

Judge Engelmayer called the decision to set the trial date so far in advance “unprecedented,” while acknowledging the need for time from both parties.

The charges against Kwon relate to the collapse of Terraform Labs’ algorithmic stablecoin, TerraUSD (UST), which resulted in estimated losses of US$40 billion and a wider crisis in the cryptocurrency industry in 2022.

The court session addressed pre-trial procedures and started the discovery phase, with Engelmayer encouraging discussions on plea negotiations.

Kwon appeared in the US District Court for the Southern District of New York today for an initial conference regarding his federal fraud case.

Kwon has pleaded not guilty to multiple felony charges, facing up to 130 years in prison if convicted.

Recent Terraform developments

Timeline
03-Jan-2025 ⚖️ Ex-Terraform Labs CEO Do Kwon denies fraud charges
  • Do Kwon pleads not guilty to fraud charges.
  • Charges linked to TerraUSD and Luna collapse.
28-Dec-2024 ⚖️ Ex-Terraform Labs CEO Do Kwon to be extradited to US
  • Do Kwon extradited to the US for fraud charges
  • Arrested in Montenegro after TerraUSD collapse
27-Dec-2024 ⚖️ Ex-Terraform Labs CEO Do Kwon loses extradition appeal
  • Montenegro court rejects Kwon’s extradition appeal
  • Justice Minister to decide Kwon’s extradition date
22-Jan-2024 📉 Terraform Labs files for bankruptcy in US
  • Terraform Labs files for Chapter 11 bankruptcy
  • Co-founder Do Kwon’s trial postponed to March 25

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