More Trouble For Do Kwon? Hearing Delayed As New Piles Of Evidence Surface

The legal troubles of Do Kwon are far from over. A US federal judge has postponed his court hearing, originally set for March 6, after prosecutors uncovered a massive amount of new evidence.

With four terabytes of additional data now in play, the case against the Terraform Labs co-founder is becoming even more complex.

Massive Data Dump Forces Delay

Prosecutors have handed over 600 gigabytes of data to Kwon’s defense team so far. This includes materials from his phones, emails, and other electronic accounts. But now, with four terabytes of new evidence to examine, both sides need more time to prepare.

The court has pushed the hearing date to April 10 to allow prosecutors to sort through the files and the defense to review what could be critical information. The judge’s decision reflects the size of the data and its potential impact on the case.

Key Deadlines Before Do Kwon Trial

This delay has not changed the date of the trial—January 26, 2026. Both sides have until July 1 to submit pretrial motions; the deadline for reply is August 11. These filings most certainly will affect the arguments put up in court and during the trial.

After the prosecutors stated in a letter dated February 27 that they expected to produce an extra 4 gigabytes of discovery to the defense by the end of next week, Judge Paul Engelmayer delayed a hearing scheduled for March 6 to April 10 in an order dated March 3.

After January 2025 pleading not guilty to nine felony fraud charges, Kwon enters a protracted legal fight. As the case develops, his defense team will work to refute the evidence and assertions of the prosecution.

Terraform Labs, the company Kwon co-founded, collapsed in May 2022. The failure of its algorithmic stablecoin, TerraClassicUSD (USTC), wiped out $60 billion in market value. The fallout led to widespread losses, investigations, and lawsuits.

After the collapse, Kwon moved between Singapore and Dubai before being arrested in Montenegro in March 2023 for using a fake passport. He served a four-month sentence there before being extradited to the US in December 2024.

With the case growing more complicated, Kwon’s future remains uncertain. The addition of four terabytes of evidence raises new questions about the strength of the prosecution’s case. If this material contains damning information, it could be bad news for Kwon.

For now, all eyes are on the upcoming hearing in April. The extra time may help both sides prepare, but it also signals that the legal battle over Terraform Labs is far from finished.

Featured image from Gemini Imagen, chart from TradingView