Do Kwon’s US Hearing Delayed: A Simple Explanation
You might have heard about Do Kwon, the co-founder of Terraform Labs, who’s in trouble with the law. Recently, a US court postponed a key hearing in his case because there’s a lot of new evidence to look at. Let’s break down this story into simpler bits.
What’s the problem?
Do Kwon’s company, Terraform Labs, created a type of digital money called TerraUSD (UST). Last year, UST suddenly lost its value, causing around $40 billion in losses for people who invested in it. The US government thinks Kwon lied about how safe UST was, which led to this big problem. Kwon says it wasn’t his fault.
Why was the hearing delayed?
The court hearing was delayed because the prosecutors gave Kwon’s lawyers a huge amount of new evidence to look at. This includes messages from Kwon’s phone, his emails, and records of crypto transactions. There’s so much evidence that it’s taking time for the defense to go through it all. The hearing was moved from March 10 to April 10.
What happens now?
The trial is still scheduled for January 26, 2026. People who lost money because of the Terraform Labs collapse can still submit their claims for compensation until April 30. The US Securities and Exchange Commission (SEC) is also involved in the case. They’ve already said Kwon and Terraform Labs broke the rules and cheated investors. The court has already ordered them to pay a $4.5 billion fine.
Why is this important?
This case is like a test for how the law should handle digital money, or cryptocurrency. As more people use and invest in cryptocurrency, it’s important to have clear rules and strong oversight to protect people’s money. The result of this case could set an example for other similar cases in the future.
Sources: Cryptoslate, Protos, PANewsLab, ChainCatcher