Do Kwon’s US Court Hearing Delayed: A Closer Look
The story of Do Kwon, the co-founder of Terraform Labs, is still unfolding. Recently, a US court pushed back a key hearing in his case because there’s now a lot of new evidence. This means the case is becoming more complicated, and both sides need more time to look at all the information. Let’s dive into the details, find out why the hearing was delayed, and see what this means for the future of cryptocurrency rules.
The Case Against Do Kwon
Do Kwon’s legal problems started when Terraform Labs’ special kind of digital money, called TerraUSD (UST), lost almost all its value in 2022. This caused about $40 billion in losses for people who invested in it[1]. The US government thinks Kwon lied about how stable the Terraform system was, which led to one of the biggest money problems in the history of digital money. Kwon says the market going down was unexpected and not because of any wrongdoing by him[1].
The Delay and New Evidence
The hearing was delayed because the people who are trying to prove Kwon did something wrong gave his lawyers a huge amount of new evidence. On February 27, they gave them 600 gigabytes of information, including messages from Kwon’s phones, his emails, and records of his digital money transactions[2][3]. They also said they would give them another four terabytes of information by the end of the next week[2][3]. This means there’s a lot of evidence to look through, so the hearing was moved from March 10 to April 10 to give the defense more time to go through it all[1][2].
What the Delay Means
The delay makes an already important case even more complicated. The defense team now has to look through a huge amount of evidence, which is over four terabytes in total. This delay also shows that both sides are being very careful and want to make sure they look at every part of the case before the trial starts[1][2].
The Future of the Case
Even with the delay, the trial is still set to start on January 26, 2026[1][3]. People who lost money because of the Terraform Labs problem have until April 30 to say how much money they lost[2]. The group that makes sure people follow the rules for digital money, called the SEC, has also been involved in the case. They said Kwon and Terraform Labs did something wrong and made people who invested in their digital money lose money. The court said Kwon and Terraform Labs have to pay $4.5 billion because of this[1].
A New Chapter in Crypto Rules
The delay in Do Kwon’s hearing is an important moment in the story of how digital money is ruled. As the legal system tries to understand digital money better, cases like this show that we need clearer rules and more people watching to make sure everyone follows them. What happens in this case will not only decide what happens to Do Kwon but also set an example for other cases about digital money in the future. Everyone is watching to see how this will shape the future of digital money.
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Sources:
– Cryptoslate
– Protos
– PANewsLab
– ChainCatcher