The U.S. government’s case against former Terraform Labs CEO Do Kwon has been postponed until April after prosecutors uncovered an additional four terabytes of evidence requiring further review.
Prosecutors Request More Time for Evidence Review
Judge Paul Engelmayer of the Manhattan federal court issued an order on March 3, pushing back Kwon’s hearing from March 6 to April 10. This decision follows a Feb. 27 letter from prosecutors stating they expected to provide the defense with the newly discovered evidence by the end of the week.
The government’s letter noted that the evidence includes:
- Data from various electronic accounts
- Materials from third-party entities and individuals
This delay grants Kwon’s legal team additional time to examine the new information before proceeding with the case.
Massive Data Dump in Kwon’s Case
Prosecutors have already provided Kwon’s defense with 600 gigabytes of data from four of his previously owned cellphones, along with emails from both his personal and business accounts.
Other key materials handed over to the defense include:
- Documents related to Kwon’s extradition to the U.S.
- FBI records on evidence collected in Montenegro
- Statements Kwon made to the U.S. Securities and Exchange Commission
- Records of cryptocurrency trading data
Background: Terra’s Collapse and Kwon’s Legal Battle
Do Kwon was the co-founder of Terraform Labs, the company behind the Terra Luna ecosystem, which collapsed in May 2022. The crash wiped out $60 billion in market value after its stablecoin, TerraClassicUSD (USTC), lost its peg and fell below $0.01, triggering a panic-driven selloff of Terra Luna Classic (LUNC).
Following Terra’s downfall, Kwon moved between Singapore and Dubai before being arrested in Montenegro in March 2023 for attempting to travel with a fake Costa Rican passport. After serving a four-month prison sentence, he was extradited to the U.S. in December.
In his first U.S. court appearance on Jan. 2, Kwon pleaded not guilty to nine felony charges, including fraud.
