## Detailed Analysis: Do Kwon’s US Court Hearing Delayed
Introduction
A significant development has occurred in the ongoing legal case against Do Kwon, the co-founder of Terraform Labs. The US court has postponed a key hearing in the case due to the substantial amount of new evidence submitted by prosecutors. This delay highlights the complexity and depth of the legal battle surrounding Terraform Labs’ collapse.
Background
Do Kwon’s case stems from the dramatic collapse of Terraform Labs’ algorithmic stablecoin, TerraUSD (UST), in May 2022. This collapse resulted in approximately $40 billion in investor losses and led to a broader destabilization of the cryptocurrency market. Kwon was extradited from Montenegro to the US in December 2024 and has pleaded not guilty to multiple fraud-related charges.
The Delayed Hearing
The hearing, originally scheduled for March 10, 2025, has been rescheduled for April 10, 2025. This decision was made after prosecutors submitted a vast amount of new evidence, totaling four terabytes, which includes data from Kwon’s cellphones, emails, and cryptocurrency transactions. The court agreed to the delay to allow Kwon’s defense team sufficient time to review this extensive evidence.
New Evidence
As of February 27, 2025, the US government had already provided 600 gigabytes of evidence to the defense. This initial batch included data from four cellphones previously owned by Kwon, emails from his personal and business accounts, and records of crypto transactions. The additional four terabytes of evidence are expected to be delivered by the end of the following week and will include information from warrants on various electronic accounts and materials from third-party entities and individuals.
Legal Implications
The delay introduces further complexity to an already high-profile case. Federal prosecutors allege that Kwon knowingly misrepresented the stability of Terraform’s ecosystem, leading to one of the most significant financial downturns in crypto history. Meanwhile, Kwon maintains that the market downturn was unforeseen and not the result of fraudulent activity.
Trial Schedule
Despite the hearing delay, the jury trial remains scheduled for January 26, 2026. Additionally, victims of the Terraform Labs collapse have until April 30, 2025, to submit claims for financial losses.
SEC Involvement
Terraform Labs has also faced scrutiny from the Securities and Exchange Commission (SEC), which has accused Kwon of orchestrating a large-scale crypto fraud. In April 2024, a jury found Do Kwon and Terraform Labs liable for defrauding investors in crypto asset securities. The SEC subsequently filed a motion seeking $5.3 billion in disgorgement and civil penalties, with the court ultimately imposing a $4.5 billion fine.
Conclusion
The postponement of Do Kwon’s hearing underscores the extensive nature of the legal proceedings against him. As the case progresses, the sheer volume of evidence will continue to play a crucial role in determining the outcome. With the trial set for early 2026, both sides will have ample time to prepare their arguments amidst the ongoing scrutiny of Terraform Labs’ activities.
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Timeline of Key Events
– May 2022: Terraform Labs’ algorithmic stablecoin, TerraUSD, collapses, leading to significant investor losses.
– March 2023: Do Kwon is arrested in Montenegro while attempting to travel with a fake passport.
– December 2024: Kwon is extradited to the US.
– January 2, 2025: Kwon pleads not guilty to multiple fraud-related charges.
– February 27, 2025: Prosecutors submit 600 gigabytes of evidence to the defense.
– March 2025: The court delays a key hearing to April 10 to allow time for reviewing additional evidence.
– April 30, 2025: Deadline for victims to submit claims for financial losses.
– January 26, 2026: Scheduled date for the jury trial.
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References
1. [US Court Delays Do Kwon Hearing as Prosecutors Unveil 4 Terabytes of Evidence](https://coinmarketcal.com/pt/news/us-court-delays-do-kwon-hearing-as-prosecutors-unveil-4-terabytes-of-evidence)
2. [The Do Kwon Hearing Has Been Postponed Due to the Need for More Time to Review 4TB of New Evidence](https://www.chaincatcher.com/en/article/2170829)
3. [Do Kwon Hearing Postponed Due to Needing More Time to Review 4TB of New Evidence](https://followin.io/en/feed/16657529)
4. [Do Kwon’s US Court Hearing Delayed as Prosecutors Review a Swath of New Evidence](https://cointelegraph.com/news/do-kwon-court-hearing-delayed-prosecutors-unpack-more-evidence)
5. [Do Kwon’s US Court Hearing Delayed as Prosecutors Review a Swath of New Evidence](https://www.cryptocraft.com/news/1330681-do-kwons-us-court-hearing-delayed-as-prosecutors)
Related sources:
[3] followin.io