- US prosecutors requested a delay in Do Kwon’s trial after uncovering four terabytes of new evidence.
- The trial is now set for April 10, 2025, as the defense reviews the massive discovery data.
A Manhattan federal court judge has postponed the US government’s case against former Terraform Labs CEO Do Kwon. The delay comes after prosecutors sought additional time to review an enormous cache of evidence totaling four terabytes.
The hearing, originally scheduled for March 6, will now take place on April 10, under an order made by Judge Paul Engelmayer. This follows a letter sent to the court on February 27 to inform them about the anticipated evidence production.
The new evidence consists of Kwon’s private and professional emails, SEC reports, and third-party source materials.
The government has already given the defense more than 600 gigabytes of information, and the remaining four terabytes are to be disclosed soon. The court has given additional time to adequately review the large amount of information.
Authorities Yet to Identify Additional Foreign Evidence
The government’s latest filing also mentions four cell phones that were confiscated from Kwon upon his arrest in Montenegro. The phones are full of important information that can mold the case of the prosecution.
However, the government has not released further evidence obtained from other governments. The US Department of Justice has confirmed that there are no transcripts or records of the other governments’ interviews.
The government has already made public two SEC interviews that Kwon has given. This includes the transcripts of a meeting that was conducted in July 2021 and the depositions that were taken in August 2022. The next hearing in the case will decide the impact that this newly discovered evidence will have.
Under the new timeline, the pretrial motions will be heard on July 1, the reply deadline being August 11. The final hearing on the motions in limine will be heard by January 2026, opening the doors to a trial soon afterward.
The prosecution will ensure that the process of discovery will be completed well in advance to allow both sides to be adequately prepared.
Terraform Legal Saga Likely to Extend Into 2025
Kwon’s trial further complicates an already sensational case. Terraform Labs and the collapsed stablecoin TerraUSD were the subjects of one of the crypto market’s biggest finance scandals.
The collapse of the company in 2022 wiped out billions of investors’ capital, triggering global regulatory scrutiny.
Kwon, who was arrested last year in Montenegro, faces fraud-related charges in the US and South Korea. Extradition has continued to be the subject of legal argument, with both authorities keen to take him into custody.
The recent judicial developments suggest the case will stretch well into 2025, keeping investors and regulators on edge.
With new evidence piling up, the legal case against Terraform Labs has a long way to go. The next hearing will determine the next move, but in the meantime, Kwon’s lawyers will have a stack of information to sort through before trial proceedings can proceed further.