Do Kwon’s criminal trial concerning the $40 billion collapse of TerraUSD is set to begin on January 26, 2026, in the Southern District of New York. This trial follows a significant amount of evidence collected from Montenegrin authorities after Kwon’s extradition in December 2024.

The lead prosecutor has described the discovery process as “massive,” highlighting the challenges involved in decrypting and translating approximately six terabytes of materials. Kwon faces a nine-count indictment that includes serious charges such as:

• Securities fraud
• Wire fraud
• Commodities fraud
• Conspiracy to commit money laundering

Allegations against him include misleading investors about the stability of TerraUSD’s algorithm and engaging in market manipulation. The collapse of Terraform Labs in May 2022 led to significant financial losses and contributed to wider market instability, affecting other companies like FTX. Following the bankruptcy of Terraform Labs and a $4.5 billion settlement with the SEC in 2023, a New York jury found Kwon and the company liable for civil fraud in April 2024. The trial is expected to last between four to eight weeks, and Kwon, who has pleaded not guilty, remains in detention without bail after nearly two years in custody in Montenegro. A status conference is scheduled for March 6, 2025.

📎 Related coverage from: cryptobriefing.com