New York Judge Sets Trial Date for Terra Founder Do Kwon

New York District Judge Paul Engelmayer schedules the trial dates of Terra co-founder Do Kwon for late January 2026, with the proceeding expected to last up to eight weeks. 

The court issued the decision yesterday following Kwon’s second court appearance in a New York federal court, according to a Bloomberg report.

Yesterday’s proceeding flagged off the discovery phase of the highly anticipated lawsuit featuring Terra co-founder whose stablecoin, UST, lost its peg to the dollar in 2022, leading to a $40 billion wipeout. 

Kwon Trial to Begin in January 2026 

Notably, yesterday’s session was scheduled to determine whether the court would grant a settlement of the lawsuit without a trial. However, the court believes a trial is necessary, scheduling the proceeding for January 26, 2026. 

Judge Engelmayer approved the date following a request from Kwon’s lawyers, who asked for a year to prepare for the trial. The rationale behind the request is to give the Terra co-founder ample time to prepare for the proceeding due to his other legal woes outside the U.S. 

While granting the request, the judge stated that setting a trial date of more than a year after the initial conference has never been done before. Nonetheless, he granted the request, scheduling the date for January 26, 2026. 

Kwon’s Charges 

It is worth noting that Kwon is currently facing nine felony charges related to alleged fraud at his company, Terra. He pleaded not guilty to all charges in the hope of defending himself at trial. However, if found guilty, he could spend up to 130 years behind bars. 

For context, Kwon’s case revolves around allegations suggesting that he made false claims regarding the stability of the Terra system. Recall that the U.S. SEC introduced a lawsuit against him in 2023, alleging that he connived with another company, Jump Crypto, to help maintain UST’s peg before its ultimate collapse. 

According to the U.S. government, both litigants and litigators submitted six terabytes of evidence sourced from phones and social media accounts. 

Upcoming Trial 

Of the eight weeks the trial is expected to take, Kwon’s prosecution will take four weeks. Ahead of the trial, Judge Engelmayer requested clarity on behalf of the jury to determine whether securities laws would impact the proceeding. 

He referenced the lawsuit between the SEC and Kwon, in which Judge Jed Rakoff ordered the defendant to pay a fine of $4.5 billion for violating federal securities law. 

It is worth mentioning that Kwon is also facing criminal charges in South Korea. After Montenegro authorities arrested Kwon, both South Korea and the United States were embroiled in a fierce legal tussle over his extradition. Last month, Montenegro finally approved the U.S. request to extradite Kwon.