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Terraform Labs cofounder Do Kwon is set to stand trial early next year in the US on criminal charges.
Do Kwon faces criminal fraud charges related to the $40 billion collapse of the TerraUSD stablecoin (LUNA) in 2022.
US District Judge Paul Engelmayer has scheduled Do Kwon's trial date for 26 January 2026 in New York with proceedings expected to last between four to eight weeks.
Kwon, who recently pleaded not guilty, has been at the centre of a two-year legal battle involving extradition disputes between the US and South Korea. Both countries have charged Kwon in connection with the collapse of LUNA.
US Attorney Daniel Gitner to the U.S. District Court for the Southern District of New York said in a filing on 6 January that more than one million people were affected by the stablecoin's crash.
“The Government estimates that the number of victims in this case exceeds hundreds of thousands of individuals and entities, and potentially totals more than one million,” Gitner said.
Just over a week ago, it was reported that Do Kwon would be extradited to the United States from Montenegro.W
The Montenegrin Ministry of Justice confirmed the decision, stating that Justice Minister Bojan Bozovic approved Kwon's extradition to the US. The Ministry’s statement emphasized that “the majority of the criteria prescribed by law favour the extradition request from the competent authorities of the United States of America.”
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Sinagpore-based Terraform’s bankruptcy plan was approved by US Bankruptcy Judge Brendan Shannon as a “welcome alternative” to further litigation. The firm agreed to pay $4.47 billion in June to settle a lawsuit brought by the US Securities and Exchange Commission (SEC) over the collapse.
In April, Do Kwon was found civilly liable for fraud after a two-week trial in the SEC case.
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