Terraform Labs co-founder Do Kwon is set to face trial in the US early next year, according to reports from Bloomberg. The trial, scheduled by New York District Judge Paul Engelmayer, is expected to commence on January 26th, 2026, and could last between one to two months.
Kwon is facing criminal fraud charges stemming from the collapse of the TerraUSD algorithmic stablecoin and LUNA token in 2022. US prosecutors allege that the 33-year-old deceived investors about the stability of the cryptocurrency assets, resulting in a $40 billion collapse of the Terra ecosystem.
Following his extradition from Montenegro, Kwon was arrested at Podgorica Airport in March 2023 while attempting to board a flight to Dubai using a fake Costa Rican passport. Despite facing charges in both the US and South Korea, Montenegrin authorities decided to extradite him to the United States. Kwon arrived in the US on December 31st.
The charges against Kwon include conspiracy to defraud, two counts of commodities fraud, two counts of securities fraud, two counts of wire fraud, and conspiracy to defraud and engage in market manipulation. If found guilty on all counts, Kwon could face a maximum penalty of 130 years in prison.
To stay updated on this case and other cryptocurrency news, subscribe to our email alerts. Follow us on Twitter, Facebook, and Telegram for real-time updates. Don’t miss out on the latest price action and market trends.
In conclusion, the trial of Do Kwon highlights the importance of transparency and honesty in the cryptocurrency industry. As the case unfolds in court, the outcome will have significant implications for the future of digital assets. Stay informed with The Daily Hodl for the latest developments in the world of crypto.
Generated Image: Midjourney
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix