Do Kwon’s criminal trial over the $40 billion TerraUSD collapse is scheduled for January 2026, with prosecutors reviewing six terabytes of evidence.Do Kwon’s trial over the TerraUSD collapse is set for January 2026, with prosecutors handling six terabytes of evidence, including materials requiring translation from Korean.Do Kwon’s Trial Scheduled for 2026Do Kwon, the co-founder of Terraform Labs, is set to face trial on January 26, 2026, in the Southern District of New York. The trial pertains to the collapse of TerraUSD, which resulted in a loss of approximately $40 billion. Prosecutors are currently reviewing six terabytes of evidence, which includes documents in Korean that need to be translated.Charges and PleaKwon has pleaded not guilty to charges of securities fraud, wire fraud, and money laundering. These charges stem from the dramatic collapse of TerraUSD and its associated cryptocurrency, Luna, in May 2022. The collapse sent shockwaves through the cryptocurrency market, leading to significant financial losses for investors worldwide.SEC Settlement and Civil Fraud CasePrior to the criminal trial, Kwon and Terraform Labs reached a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC). The settlement was part of a civil fraud case where Kwon was found liable for misleading investors about the stability of TerraUSD. The SEC’s investigation revealed that Terraform Labs had falsely marketed TerraUSD as a stablecoin pegged to the U.S. dollar, which it was not.Prosecutors’ ChallengeThe prosecution faces the daunting task of sifting through a massive amount of evidence. The six terabytes of data include emails, financial records, and internal communications, much of which is in Korean. Translating these documents is expected to be a time-consuming process, contributing to the trial’s delayed start date.Impact on the Cryptocurrency MarketThe TerraUSD collapse has had a lasting impact on the cryptocurrency market, leading to increased scrutiny from regulators and a loss of investor confidence. The case against Kwon is seen as a pivotal moment in the regulation of digital assets, with potential implications for the future of cryptocurrency.Looking AheadAs the trial date approaches, all eyes will be on the Southern District of New York. The outcome of this case could set a precedent for how similar cases are handled in the future, potentially leading to stricter regulations and oversight in the cryptocurrency industry. https://redrobot.online/2025/01/do-kwons-trial-set-for-january-2026-as-prosecutors-review-vast-evidence/