Terra Founder Do Kwon's Trial Set for 2026: Inside the Courtroom
Terra Founder Do Kwon appeared in front of the judge in his trial for the first time
By: Zack Guzman
January 8, 2025
Terra founder Do Kwon appeared today in a Manhattan courtroom before the judge that will preside over his trial as an initial date was set for January 2026.
Kwon, wearing shackles and a yellow prison jumpsuit, looked like an entirely different man — about 70 pounds thinner since his exclusive interview in Coinage's post-Terra collapse coverage — as he was ushered into the courtroom by the exact same U.S. Marshalls that had once escorted Sam Bankman-Fried at the beginning of his trial.
Kwon addressed the court only once during the two-hour initial conference by greeting Judge Paul Engelmayer with a, "Good morning, sir."
Both prosecutors and Kwon's defense team went back and forth over details of the case, and discussed the initial timeline for a trial. Judge Engelmayer noted the historic nature of the case as prosecutors detailed 6 terabytes of data pertaining to the case, including a drove of trading data and potentially new evidence from four confiscated cell phones, including one obtained only after Kwon's extradition from Montenegro.
Considering all of that, Judge Engelmayer made an exception to his normal scheduling proceedings to allow extra time to prepare for trial. Kwon's defense team floated setting the beginning of the trial in the spring of 2026.
"I can't remember a case where I've set a trial a year out, but I can't imagine a better candidate," he said, asking about details surrounding the timeline for Bankman-Fried's prior trial in the same district.
Sam Bankman-Fried's trial date followed a little less than a year after his extradition from the Bahamas. Coinage exclusively presented a pre-trial look at SBF's defense we obtained during a visit to his parents' Palo Alto home.
Judge Engelmayer noted this case was different since Kwon had already served time in Montenegro and asked his defense team if they would like to instead proceed earlier with a trial around Labor Day. Ultimately, both sides agreed on January 2026 as an initial trial date, pending any changes of heart to come in the next week by Do Kwon's team.
"After that," Judge Engelmayer said, "it won't be a week later."
What was immediately clear is that the trial would involve far more evidence than what was presented during the Securities and Exchange Committee's civill fraud trial brought against both Do Kwon and Terraform Labs. Prosecutors noted that data in that trial only amounted to about one terabyte of data — roughly one-sixth of what's to come. Prosecutors also noted that only about two of the five fraud theories against Do Kwon were presented by the SEC in that case, during which a jury ultimately found Do Kwon and Terra liable for fraud.
Do Kwon faces potentially nine counts of felony charges, including conspiracy and fraud charges that would amount to a maximum sentence of 130 years in prison. Until then, Do Kwon is being held in custody though it wasn't made immediately clear where.
The next meeting in the case is scheduled for March. Coinage has previously published two additional parts to our award-winning documentary on the Terra collapse:
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