US prosecutors have laid out their plans for discovery in the ongoing criminal case against Terraform Labs co-founder Do Kwon.
US prosecutors have laid out their plans for discovery in the ongoing criminal case against Terraform Labs co-founder Do Kwon, aiming to examine substantial amounts of personal and professional data. Court documents filed on Jan 7 revealed that prosecutors will search Kwon’s personal email accounts, social media profiles, and several electronic devices. These efforts are part of the government’s strategy to gather evidence related to fraud, money laundering, and conspiracy charges surrounding the collapse of the Terra ecosystem in 2022.
Kwon is facing nine felony charges, including fraud and money laundering conspiracy. His trial is scheduled to begin on January 26, 2026, in the US District Court for the Southern District of New York. Authorities expect the discovery process to uncover multiple terabytes of data. The investigation will also include trading records, materials from cryptocurrency exchanges, and public statements made by Kwon on social media platforms, including Twitter, where he continued posting until shortly before his arrest in Montenegro in 2023.
In the court filing, prosecutors outlined that search warrants would extend to accounts or devices used by Kwon, which include his business and personal emails, Twitter account, and four mobile devices. The investigation will also probe into the business records of Terra’s employees, investors, and partners, as well as any relevant recorded public statements made by Kwon.
Kwon’s extradition to the US on December 31, 2023, followed a prolonged legal battle between the US and South Korea over competing requests. Prior to his arrest, Kwon had attempted to flee Montenegro using a fake Costa Rican passport. He is also wanted in South Korea for similar charges. If convicted in the US, Kwon could face several decades in prison.
The prosecution of Kwon bears similarities to that of former FTX CEO Sam Bankman-Fried, who was extradited from the Bahamas to the US and sentenced to 25 years in prison after being found guilty of multiple felonies. Like Bankman-Fried, Kwon faces significant legal challenges, and prosecutors have expressed confidence that their evidence will hold up, even in the event of any challenges to the money laundering charge, which was not part of Kwon's original extradition request.
As prosecutors work to unravel the details of Kwon’s financial activities and alleged fraudulent schemes, they are also reportedly examining recordings made without Kwon’s knowledge that may provide further evidence. The case is expected to unfold over the next few years, with authorities aiming to bring Kwon to trial and secure a conviction for his role in the devastating collapse of the Terra ecosystem and the loss of billions of dollars for investors.
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