Do Kwon’s Criminal Prosecution Expected to Begin in Early 2026

The highly anticipated cryptocurrency trial of Terraform Labs founder Do Kwon is expected to commence in early 2026, according to U.S. Attorney Jared Lenow. The prolonged discovery period is a major factor contributing to the delayed start date, with a substantial volume of data to be sifted through.

Discovery Period Challenges

Lead prosecutor Lenow cited six terabytes of materials that need to be reviewed, which is a significant challenge. Additionally, the prosecution is facing delays in translating Kwon’s messages from Korean to English, further complicating the process. The government investigators have yet to unlock four of Kwon’s encrypted devices, which also hinders the progress of the case.

These challenges led District Judge Paul Engelmayer of the Southern District of New York to describe the scheduling as “unprecedented” in his 15 years on the bench.

Charges and Penalties

Do Kwon submitted a not-guilty plea, denying nine charges, including securities fraud and money laundering conspiracies related to the $60 billion collapse of Terra in 2022. Federal prosecutors estimate that over 1 million investors were affected by the Terra/Luna ecosystem failure.

Moreover, a New York jury found Kwon and Terraform Labs guilty in a civil fraud lawsuit filed by the U.S. Securities and Exchange Commission. The court ordered Terraform to cease its business operations and pay $4.5 billion in fines.

Upcoming Hearing and Trial Preparations

Do Kwon’s defense, led by Hecker Fink LLP lawyer Michael Ferrara, has been given one week to request an earlier trial date. The next hearing is scheduled for March 6.

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