Do Kwon’s U.S. Court Hearing Delayed as 4TB Crypto Fraud Data Revealed

Terraform Labs co-founder Do Kwon Do Kwon Do Kwon is an entrepreneur, known as the co-founder and ex-CEO of Terraform Labs. This company created the cryptocurrencies Terra (LUNA) and TerraUSD (UST). Kwon's career is notable. He co-founded Terraform Labs in January 2018 with Daniel Shin. Their goal is to enhance payment systems using blockchain technology. This effort led to the creation of the Terra blockchain and its tokens, LUNA and UST. Details: Organization: Terra Money Location: South Korea Education: BS in Computer Science from Stanford University  Experience: Founder & CEO at Terraform Labs logo from Jan 2018 - Present  Founder & CEO at Anyfi Inc. from Jan 2016 - Oct 2017  FAQ's 1. When was Terraform was launched? Terraform was launched in 2018. 2. What is the net worth of Do Kwon? Do Kwon's net worth is $10 Billion   EntrepreneurCrypto and Blockchain ExpertChief Executive Officer ’s legal troubles just got even worse. His U.S. court hearing, originally set for March 6, has been postponed after prosecutors uncovered a staggering amount of new evidence. And we’re not talking about a few extra documents – this is four terabytes of fresh data that could change everything.

Here’s everything you need to know.

New Evidence Comes to Light

Judge Paul Engelmayer of the Manhattan federal court approved the delay after prosecutors disclosed that they had found an additional four terabytes of evidence. This includes data from electronic accounts and third-party entities. The discovery follows an earlier release of 600GB of evidence, which contained Kwon’s phone data, emails, and crypto transaction records.

Despite the postponement, Kwon’s final trial date remains January 26, 2026. The court has ordered both sides to submit pretrial motions by July 1, with responses due by August 11.

Do Kwon Stands Firm

Kwon has pleaded not guilty, claiming he was shocked by how the market reacted after Terra’s collapse.

His legal troubles stem from the downfall of Terraform Labs in May 2022, when the algorithmic stablecoin TerraClassicUSD (USTC) lost its peg and crashed below $0.01. The panic that followed wiped out $60 billion in market value, dragging down Terra Luna Classic (LUNC) and causing widespread investor losses.

After the collapse, Kwon moved between Singapore and Dubai before being arrested in Montenegro in March 2023 while attempting to travel with a fake Costa Rican passport. He served a four-month prison sentence before being extradited to the U.S. in December 2024.

On January 2, 2025, he appeared before a U.S. judge and pleaded not guilty to nine felony fraud charges.

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SEC Hits Kwon with Billions in Penalties

Aside from the criminal case, Kwon and Terraform Labs are also facing legal action from the U.S. Securities and Exchange Commission (SEC). The SEC accused Kwon of misleading investors about Terra’s stability. In April 2024, a jury found both him and Terraform Labs guilty of defrauding investors.

Following the verdict, the SEC sought $5.3 billion in fines, calling it a conservative estimate of fraudulent gains. The court ultimately imposed a $4.5 billion penalty on Kwon and Terraform Labs.

The rise and fall of Terraform Labs is now etched in crypto history, but for Do Kwon, the final chapter is yet to be written.