Do Kwon’s US Court Hearing Delayed: A Closer Look
You might have heard about Do Kwon, the co-founder of Terraform Labs. His legal troubles are making headlines again. Recently, a US court postponed an important hearing in his case because there’s so much new evidence to look at. Let’s dive into the details of this case and find out what’s happening.
The Case Against Do Kwon
Do Kwon’s problems started when an algorithmic stablecoin called TerraUSD (UST), created by Terraform Labs, crashed. This caused around $40 billion in losses for investors in 2022[1]. The US government thinks Kwon deliberately misled people about how stable Terraform’s ecosystem was. But Kwon says the market downturn was unexpected, not because of any wrongdoing[1].
The Delay and New Evidence
The hearing was delayed because the US government gave Kwon’s lawyers a huge amount of new evidence on February 27. This included data from Kwon’s phones, emails, and crypto transactions, totaling 600 gigabytes[2][3]. Prosecutors plan to give them another four terabytes of evidence by the end of the following week[2][3]. This “massive amount of evidence” needed more time for the defense to review, so the hearing was rescheduled from March 10 to April 10[1][2].
What the Delay Means
The delay makes an already big case even more complicated. The defense team now has to go through over four terabytes of evidence. This delay also shows how carefully both sides are examining every part of the case before the trial[1][2].
What’s Next?
The jury trial is still set for January 26, 2026[1][3]. People who lost money because of the Terraform Labs collapse can submit their claims until April 30[2]. The SEC has also been involved in the case and found Kwon and Terraform Labs guilty of cheating investors. The court ordered them to pay a $4.5 billion fine[1].
A New Chapter in Crypto Regulation
The delay in Do Kwon’s hearing is a big moment in the ongoing story of cryptocurrency rules. As the legal system tries to understand digital assets better, cases like this show the need for clearer rules and stricter oversight. This case will not only decide Do Kwon’s fate but also set a precedent for future crypto-related legal battles. Everyone is watching to see how the future of cryptocurrency will be shaped by today’s legal battles.
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Sources:
– Cryptoslate
– Protos
– PANewsLab
– ChainCatcher