- Do Kwon is a South Korean entrepreneur and the co-founder of Terraform Labs.
- His big crypto project, the Terra blockchain, had two major tokens, TerraUSD (UST) and LUNA designed to keep UST at $1 through supply and demand.
- UST lost its $1 value, and LUNA became nearly worthless in May 2022.
- Do Kwon now faces civil and criminal charges in Korea and in the US alleging that he defrauded and misled people about the safety of the UST.
Terraform Labs co-founder and South Korean entrepreneur Do Kwon’s upcoming court appearance has been further delayed by a U.S. Federal judge. Reports say this is to allow further pretrial negotiations between his legal team and federal prosecutors.
The hearing initially scheduled for June 12 has been rescheduled June 23 this year at the request of both parties.
The postponement will facilitate what they described as “productive” talks and avoid unnecessary pretrial motions.
Why is Kwon in hot water?
Do Kwon, the South Korean entrepreneur and co-founder of Terraform Labs, launched the Terra blockchain. The project had two major tokens, TerraUSD (UST), an algorithmic stablecoin and LUNA designed to keep UST at $1 through supply and demand. Kwon is said to have boasted about the overwhelming safety and security of the risky yet ambitious crypto.
In May of 2022, the crypto project crashed with TerraUSD (UST) losing its $1 value, and LUNA becoming nearly worthless.
The collapse, dubbed one of the ‘biggest crypto flops ever’, resulted in an estimated $60 billion in market losses.
Nine federal charges are levelled against Kwon, including securities fraud and conspiracy to commit money laundering, related to the 2022 collapse of Terraform Labs’ stablecoin, TerraUSD (UST).
When extradited to the U.S. from Montenegro in December 2024 Kwon pleaded not guilty to the charges in January 2025.
The trial is currently set for January 26, 2026. In the meantime, both the defense and prosecution must submit pretrial motions by July 1, with responses due by August 11.
This marks the latest in a series of delays in Kwon’s legal proceedings. The hearing was postponed earlier this year to allow the defense additional time to review new evidence provided by prosecutors.
While a formal agreement is yet to be reached, the ongoing delays indicate that both parties are actively looking to settle the matter.
