After prosecutors discovered a lot of fresh evidence that could affect the case, a US federal court has delayed the forthcoming hearing for Terraform Labs co-founder Do Kwon. Originally set for March 6, the hearing has been postponed to April 10 to give time for both sides to go over the recently acquired resources.
Court documents state that prosecutors just turned in an extra four gigabytes of discovery—data from electronic accounts, third-party sources, and other investigation tools. The request comes after the earlier submission of 600 terabytes of data, including records of bitcoin transactions linked to Kwon, emails, and cellphones.
The court’s decision to postpone the hearing captures the intricacy of the case since Kwon’s defense team now has to go through a thorough review before trial events start. Despite the delay, the court has scheduled Kwon’s trial for January 26, 2026. Victims of Terraform Labs’ demise also have until April 30 to submit claims for financial losses.
Since Terraform Labs’ catastrophic collapse in May 2022 resulted in a startling $60 billion market loss, Kwon has been under legal fire. Authorities claim Kwon misled the reliability of the company’s algorithmic stablecoin, therefore fueling one of the most serious financial crises in the cryptocurrency industry.
After facing the consequences, Kwon evaded law enforcement by traversing multiple countries until his capture in Montenegro in March 2023. Having forged travel documents and then extradited himself to the United States, where he currently faces several fraud-related accusations, he was arrested trying to board a flight. Kwon insists that the fall of Terraform Labs was an unfortunate market downturn rather than a result of deliberate fraud, notwithstanding the accusations; she is also refuting any misconduct.
The newly discovered evidence could be critical in determining the case’s result while the court processes the legal actions. With the trial now scheduled for April, everyone is waiting to see how Kwon’s defense will respond to the extensive discovery materials leading up to his 2026 trial.
