The US government’s case against Terraform Labs co-founder Do Kwon has been postponed until April after prosecutors uncovered an additional four terabytes of evidence.
Reason for the Delay
Source: CourtListener
Judge Paul Engelmayer rescheduled the hearing from March 6 to April 10. Prosecutors stated in a February 27 letter that they would provide Kwon’s legal team with four terabytes of new evidence. (Adjournment notice in the image – LINK)
The evidence includes data from electronic accounts and third-party sources. Kwon’s legal team now has more time to review the information.
New Evidence Details
Prosecutors have already handed over approximately 600 gigabytes of data, including information from four cellphones previously owned by Do Kwon. The evidence also includes emails from Kwon’s personal and business accounts, extradition-related documents, and materials obtained by the FBI in Montenegro.
Additionally, the case files contain statements made by Do Kwon to the U.S. Securities and Exchange Commission (SEC) and records of his cryptocurrency trading activity.
Case Background
The Terra Luna ecosystem collapsed in May 2022, wiping out $60 billion in market value after its stablecoin, TerraClassicUSD (USTC), lost its peg. Following the collapse, Do Kwon moved between Singapore and Dubai before being arrested in Montenegro in March 2023 for attempting to leave the country with a fake passport.
After serving a four-month prison sentence, he was extradited to the U.S. in December 2023. On January 2, 2024, Do Kwon appeared before a U.S. judge for the first time and pleaded not guilty to nine fraud charges.
Do Kwon’s trial is still set for January 26, 2026. Pretrial motions must be filed by July 1, 2025, with responses due by August 11, 2025.
The delay underscores the scale of evidence collected by prosecutors. In the coming months, these documents could play a critical role in determining the case’s outcome.
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