Do Kwon's U.S. Fraud Trial Tentatively Set For January

According to CoinDesk, the criminal fraud trial of Terraform Labs co-founder and former CEO Do Kwon in the United States is tentatively scheduled for January next year. This timeline allows both prosecutors and Kwon's defense team sufficient time to examine the extensive six-terabyte data expected to be revealed during the discovery phase. During an initial hearing in Manhattan, lead prosecutor Jared Lenow informed the court of anticipated delays due to difficulties in accessing encrypted information and unlocking four cell phones provided by Montenegrin authorities following Kwon's extradition to the U.S. on December 31st. Additionally, the government faces the task of translating the extracted material from Kwon's native Korean language. District Judge Paul Engelmayer of the Southern District of New York humorously remarked on the volume of data, suggesting it would require a U-Haul to transport it to the court. Engelmayer noted that scheduling a trial over a year from the initial conference is unprecedented in his judicial career. He instructed Kwon's lead attorney, Michael Ferrara of Hecker Fink LLP, to consult with Kwon, who is currently held without bail in a local correctional facility after spending 22 months in custody in Montenegro, about the possibility of an earlier trial date. The defense has been given one week to request an earlier date in 2025. Last week, Kwon pleaded not guilty to a nine-count indictment, which includes charges of securities fraud, wire fraud, commodities fraud, and money laundering conspiracy related to the $40 billion collapse of the Terra/LUNA ecosystem in 2022. In 2023, Kwon and his company faced civil fraud charges from the U.S. Securities and Exchange Commission and were found guilty by a New York jury. They were ordered to pay $4.5 billion in penalties and disgorgement, with Kwon personally responsible for $200 million. Terraform Labs has since filed for bankruptcy. The next status conference in the case is set for March 6 at 11 a.m. Eastern Time.