Do Kwon’s US court hearing delayed as prosecutors review a swath of new evidence

A Manhattan federal court judge has delayed the US government’s case against former Terraform Labs CEO Do Kwon after prosecutors requested more time to review another four terabytes of evidence.

In a March 3 order, Judge Paul Engelmayer moved a hearing slated for March 6 to April 10 after the prosecutors said in a Feb. 27 letter that they anticipated “producing an additional 4 terabytes of discovery to the defense by the end of next week.”

The government’s letter added that the evidence included information related to warrants on “various electronic accounts” along with materials from “various third-party entities and individuals.”

The adjournment until April 10 gives Kwon’s legal team more time to review the new evidence.

*Excerpt from Judge Paul A. Engelmayer’s March 3 adjourning the next hearing to April 10. Source:* *CourtListener*

In its letter, prosecutors said they had already sent the defendants 600 gigabytes of data obtained from four cellphones previously owned by Kwon in addition to emails received and sent from Kwon’s personal and business accounts.

They added that documents relating to Kwon’s extradition to the US, the Federal Bureau of Investigation’s receipt of certain evidence in Montenegro, statements made by Kwon to the US securities regulator and records of crypto trading data have also been sent to the defendants.

The Terra Luna ecosystem collapsed in May 2022, wiping out $60 billion in market value after its TerraClassicUSD (USTC) stablecoin lost its peg, falling below $0.01. Destabilization of USTC and panic selling also contributed to the collapse of the Terra Luna Classive (LUNC) token.

After Terra’s collapse, Kwon, a South Korean national, traveled between Singapore and Dubai before making his way to Montenegro.

He was arrested in Montenegro in March 2023 while trying to board a flight to Dubai with a fake Costa Rican passport. He served a four-month prison sentence as a result.

After back-and-forth negotiations with Montenegran authorities, Kwon was extradited to the US in December. He appeared before a US judge for the first time on Jan. 2 and pleaded not guilty to nine felony charges related to fraud.

Kwon’s trial remains on schedule for Jan. 26, 2026.

The court ordered the parties to file pretrial motions by July 1 and responses to those motions by Aug. 11.

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