Terraform Labs founder Do Kwon is set to face trial in 2026 in New York on fraud charges, according to a Bloomberg report. Kwon is facing criminal fraud charges tied to the $40 billion collapse of the TerraUSD stable coin in 2022.

According to US District Judge Paul Engelmayer in NYC, Do Kwon’s trial is scheduled for January 26, 2026. It’s expected to last four to eight weeks. Kwon has pleaded not guilty, after returning to the US following a 2-year extradition saga.

Arrested in 2023, Kwon’s extradition has been the topic of discussion for the last two years. Kwon was apprehended for attempting to fly from Montenegro with falsified documents. With South Korea still charging the former crypto mogul, the country had opted to send him to the United States.

Terra's Do Kwon Faces Bail Revocation in Montenegro
Source: Coingape

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The fall of Terra Luna was a blindside swipe to the entire cryptocurrency industry. Its collapse in 2022 preceded the fall of platforms like FTX, reshaping the entire sector. Kwon had owned 92% of the fallen cryptocurrency and will now be prosecuted by the same court that heard FTX founder Sam Bankman-Fried’s case. Indeed, Bankman-Fried was convicted in November of 2023 and is now serving 25 years in prison.

The criminal case is US v. Kwon, 23-cr-0151, US District Court, Southern District of New York (Manhattan).


    • Do Kwon
    • Terra