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Do Kwon, the front man behind crypto’s disastrous Terra/
Luna collapse, is scheduled to stand trial against criminal fraud charges January 26, 2026.
What’s the Scoop?
- Extradition: On December 31, Do Kwon was extradited to the United States from Montenegro (where he was arrested 22 months ago) to stand trial against a nine-count federal criminal fraud indictment.
- Major Misrepresentations: The Department of Justice maintains that core Terra products did not work as represented, claiming that UST’s dollar peg was artificially maintained and asserting that ecosystem activity metrics were fraudulently inflated. Additionally, the DOJ alleges that Kwon personally misappropriated hundreds of millions of dollars from the Luna Foundation Guard.
- Document Deluge: Prosecutors and Kwon’s defense team expect six terabytes of data to be produced during the discovery process, some of which will not be readily accessible due to encryption and the need to translate material from Korean – Kwon’s native language.
- Locked Away: Kwon entered a “not guilty” plea to his indictment last week, but if convicted on all charges, he could face a maximum penalty of 130 years in prison.
Bankless Take:
The Terra/Luna collapse in May 2022 decimated the crypto industry and became the first major insolvency to occur during crypto’s brutal year-long bear market. While Kwon continues to receive a smattering of support on social media, the Government’s case in this matter may prove difficult to combat.
Incredible the amount Do Kwon outright blatantly lied, according to the DoJ complaint. The SEC actually took it easy on him. pic.twitter.com/xF7IZDbnvz
— _gabrielShapir0 (@lex_node) January 9, 2025
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