Do Kwon gets US trial date for $40bn Terra collapse

Almost 4 years aft the $40 cardinal nonaccomplishment of the Terra blockchain, its co-founder, brash crypto entrepreneur Do Kwon, volition look a justice and assemblage successful the United States.

Kwon’s transgression proceedings volition statesman January 26, 2026, national justice Paul Engelmayer ruled Wednesday. Kwon had not discussed the imaginable proceedings day astatine magnitude with his lawyer and has 1 week to petition an earlier trial, Engelmayer said.

The justice has ne'er presided implicit a lawsuit with a year-plus spread betwixt arraignment and trial, helium said successful his Manhattan courtroom Wednesday.

But helium had ne'er heard a lawsuit that needed the lengthy spread arsenic overmuch arsenic Kwon’s, the justice added, citing the “daunting” magnitude of grounds facing prosecutors and defence attorneys.

Kwon was extradited to the US connected New Year’s eve, ending an 18-month tug-of-war betwixt South Korea — his location state — and the US.

Prosecutors successful some countries sought Kwon’s extradition from Montenegro, wherever helium was arrested successful March 2023 aft a six period manhunt portion attempting to committee a formation utilizing a fake passport, authorities allege.

Kwon pleaded not blameworthy to nine counts of fraud past week.

Kwon, clad successful a canary-yellow jumpsuit Wednesday, had orchestrated “a massive, highly blase fraud,” authoritative Jared Lenow told the judge.

“He wasn’t conscionable promoting a coin,” Lenow said, but “a utopian system” that included a stablecoin, savings bank, and outgo strategy purportedly controlled by their users.

But the “core systems” did not relation arsenic advertised, according to the prosecutor.

“Behind the scenes it didn’t work,” and Kwon had to intervene successful an ostensibly self-regulating ecosystem to “create the illusion” it was functional, Lenow said.

Kwon’s defence attorney, erstwhile national authoritative Michael Ferrara, said determination was a existent merchandise there, and disputed the conception that Kwon had acceptable retired to defraud investors.

Ferrara besides hinted astatine imaginable skirmishes with prosecutors up of the trial.

Evidence gathered by Montenegrin authorities, for example, mightiness person to beryllium tossed, helium suggested.

Although prosecutors person obtained warrants to hunt 4 of Kwon’s phones successful their possession, those phones were seized by Montenegrin authorities, and it was not instantly wide whether Montenegrin authorities had obtained warrants to instrumentality the phones successful the archetypal place.

Other imaginable battles see the ineligible presumption of cryptocurrencies — Kwon is facing 2 counts of commodities fraud and 2 counts of securities fraud — and the extradition itself.

If convicted connected each charges, Kwon faces a maximum punishment of 130 years successful prison, according to the Department of Justice.

Aleks Gilbert is simply a New York-based DeFi analogous for DL News. You tin scope him astatine [email protected].