The collapse of TerraUSD and LUNA triggered significant financial losses for investors.
The co-founder of Terraform Labs is charged with nine criminal counts.
The trial against Do Kwon, the businessman of South Korean origin accused of being responsible for the collapse of the LUNA token and the dollar-pegged stablecoin TerraUSD (UST), was scheduled to begin in January 2026 in the United States. This was announced by Judge of the Southern District of New York, Paul Engelmeyer, at a press conference held today.
Kwon, who was extradited from Montenegro to the United States on December 31, 2024, is currently detained in a federal detention center in Brooklyn, New York. And today he appeared for the second time before a US court, since in his first impeachment hearing on January 2 He pleaded not guilty to the criminal charges against him.
Previously, US prosecutors Do Kwon was charged with nine crimes, including securities fraudwire fraud, commodity fraud and conspiracy to commit money laundering.
Additionally, the prosecution alleged that as the founder of Terraform Labs, Do Kwon “provided false information about the TerraUSD stablecoin in 2021.” They also maintained that “Terra and Luna’s growth was fueled by Do Kwon’s deceptive actions.”
So once set the start of the trial Mainly, it was also established that the court will hold an additional pretrial consultation on March 6 and continue the discovery process.
As noted in Criptopedia, CriptoNoticias’ Bitcoin academy, the Terra/Luna debacle It is considered one of the most shocking and traumatic financial events in recent years.. The magnitude of the collapse put Do Kwon in the crosshairs of multiple authorities, such as regulators in Singapore, South Korea and the United States, who are investigating the case and point to him as the author of a million-dollar cryptocurrency scam.
For this reason, this trial is expected to address fundamental questions about the regulation of cryptocurrencies, which takes on special relevance given that Donald Trump is about to assume the presidency of the United States as the first openly pro-cryptocurrency president in the world. country, with the possibility of reconfiguring the nation’s regulatory landscape.