US prosecutors are increasing their investigation into the criminal case against Do Kwon, co-founder of Terraform Labs. Their inquiry has included obtaining search warrants for his personal and business emails, Twitter account, and technological gadgets. These efforts aim to uncover critical evidence tied to fraud, money laundering, and conspiracy charges stemming from the Terra ecosystem’s dramatic collapse in 2022.
According to court files, investigators plan to retrieve large amounts of data from bitcoin exchanges, including transaction records and materials. Kwon’s social media activity, particularly on Twitter, where he actively posted until his arrest in Montenegro in 2023, is also under scrutiny.
Do Kwon is facing nine felony accusations, including fraud and conspiracy to launder money. On December 31, 2023, after a protracted legal battle, the US extradited him. If convicted, he may spend decades in prison. The US District Court for the Southern District of New York will begin his trial on January 26, 2026.
Prosecutors have likened Kwon’s case to that of Sam Bankman-Fried, the former FTX CEO who faced similar charges. For his role in the FTX collapse, prosecutors convicted Bankman-Fried and sentenced him to 25 years in prison. Authorities expect Kwon’s trial to proceed similarly, presenting substantial evidence to bolster the charges.
Investigators are examining recordings of Kwon, made without his knowledge, in addition to digital records. These recordings, which may be critical to the case, were part of the evidence in a related civil lawsuit.
The collapse of the Terra ecosystem caused significant financial losses for investors worldwide, and Kwon’s prosecution represents a key step in holding those responsible accountable. As the trial date approaches, prosecutors are confident that their findings will secure a conviction for Kwon’s alleged role in one of the cryptocurrency industry’s most devastating failures.
