Terraform Labs founder Do Kwon is set to face trial in 2026 in New York on fraud charges related to the collapse of the TerraUSD stable coin in 2022. According to a report by Bloomberg, Kwon is facing criminal fraud charges tied to the $40 billion collapse of the stable coin.

The trial, scheduled for January 26, 2026, is expected to last four to eight weeks, as stated by US District Judge Paul Engelmayer in NYC. Kwon, who has pleaded not guilty, returned to the US following a 2-year extradition saga. He was arrested in 2023 for attempting to fly from Montenegro with falsified documents. South Korea, where Kwon is still facing charges, opted to send him to the United States for prosecution.

The collapse of Terra Luna in 2022 came as a surprise to the cryptocurrency industry, preceding the fall of platforms like FTX and reshaping the sector. Kwon, who owned 92% of the fallen cryptocurrency, will now be prosecuted by the same court that heard FTX founder Sam Bankman-Fried’s case. Bankman-Fried was convicted in November 2023 and is currently serving a 25-year prison sentence.

The criminal case against Kwon is identified as US v. Kwon, 23-cr-0151, in the US District Court, Southern District of New York (Manhattan). The news of Kwon’s upcoming trial has sent shockwaves through the cryptocurrency community, as the outcome could have significant implications for the industry.

It is essential to note that the fall of Terra Luna and the subsequent legal proceedings against Kwon highlight the risks and challenges faced by participants in the cryptocurrency market. As the industry continues to evolve and attract increased regulatory scrutiny, cases like Kwon’s serve as a reminder of the importance of transparency and accountability in the digital asset space.