Judge Delays Do Kwon Case as Prosecutors Submit More Evidence

Highlights:

• A judge has delayed the hearing to April 10 so the defense can review four terabytes of new evidence.
• Kwon was extradited to the United States after serving prison time in Montenegro for using a fake passport.
• A court fined Terraform Labs and Kwon $4.5 billion for misleading investors about the stability of their crypto project.

A Manhattan federal judge has postponed the case against former Terraform Labs chief executive officer Do Kwon. The previously scheduled March 6 hearing has been rescheduled for April 10th. Prosecutors requested the delay to allow more time to review newly submitted evidence. The United States government informed the court that it would provide the defense with an additional four terabytes of discovery materials.

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🌚 #LUNA #LUNC Do Kwon's court case has been delayed by a month after the US government said the defense would need more time to review an additional four terabytes of evidence. protos#crypto pic.twitter.com/j0ogtyYT49

— CryptOpus (@ImCryptOpus) March 5, 2025

The evidence includes information gathered from different electronic accounts. Furthermore, it includes materials from third-party entities and individuals. The prosecutors had already submitted over 600 gigabytes of data. They submitted emails, cellphone records, and crypto transactions linked to Kwon. The court ruled that the defense would need some time to go through the new evidence before the hearing could proceed.

Despite the delay, Kwon is still set to go to jury trial on January 26 next year. The court has also set deadlines for pretrial motions. The defense has to file its motions by July 1, while prosecutors have until August 11 to respond. It will also give both sides time to prepare properly for further proceedings.

Do Kwon Extradition and Charges in the United States

Do Kwon was detained in Montenegro while trying to leave for Dubai using a fake Costa Rican passport. Before authorities extradited him to the United States in December, the court sentenced him to four months in prison. Upon arriving in the U.S., he appeared in court on January 2, where he pleaded not guilty to fraud charges.

His company had operated the algorithmic stablecoin TerraClassicUSD, which collapsed in May 2022. This panic selling made the stablecoin lose its peg and go below $0.01. Furthermore, the associated token of the Terraform Labs project, Terra Luna Classic, fell in value as well. An estimated $60 billion in market value was wiped out in the collapse.

Authorities claim that Kwon knowingly provided false information about Terraform Labs’ financial health. His statements, they say, resulted in major losses for those who had invested in the company. In the meantime, the prosecution is gathering new evidence to build its case. However, Kwon claimed that the market downturn was unintended and was not an act of fraud.

Ongoing Investigations and Imposed Fines on Terraform Labs

The Securities and Exchange Commission accused Kwon of orchestrating a major cryptocurrency fraud scheme. The court found Terraform Labs responsible for misleading investors in April last year. The court fined Kwon and his company $4.5 billion. The SEC originally requested $5.3 billion in fines, but the court ruled for a lower figure.

The authorities have allowed victims of the fall of Terraform to claim their financial losses. The authorities have given affected investors until April 30 to submit claims. The process will allow the affected customers to get a reimbursement of the funds they lost after the collapse.

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