US government's case against Terraform Labs co-founder Do Kwon has been postponed until April

Judge Paul Engelmayer rescheduled the hearing from March 6 to April 10. Prosecutors stated in a February 27 letter that they would provide Kwon's legal team with four terabytes of new evidence.

The US government's case against Terraform Labs co-founder Do Kwon has been postponed until April after prosecutors uncovered an additional four terabytes of evidence.

Judge Paul Engelmayer rescheduled the hearing from March 6 to April 10, according to a report by Law360. In a February 27 letter, prosecutors said they would provide Kwon's legal team with four terabytes of new evidence. The evidence includes data from electronic accounts and third-party sources.

The move gives Kwon's legal team more time to review the information.

"In the course of this investigation, the government has obtained a substantial amount of electronic data from various sources, including third parties, and portions of that data are relevant to the subject matter of this case," the letter stated.

Prosecutors have already handed over around 600 gigabytes of data, including information from four cellphones previously used by Do Kwon. The evidence also includes emails from Kwon's personal and business accounts, extradition-related documents, and materials obtained by the FBI in Montenegro.

The case files also include statements made by Do Kwon to the U.S. Securities and Exchange Commission (SEC) and records of his cryptocurrency trading activity.

The Terra Luna ecosystem collapsed in May 2022, with its stablecoin, TerraClassicUSD (USTC), losing its peg and several major cryptocurrency lenders going bankrupt. The ecosystem's total market value at the time was $60 billion.

Following the collapse, Do Kwon moved between Singapore and Dubai before being arrested in Montenegro in March 2023 while attempting to leave the country with a fake passport.

After serving a four-month prison sentence, he was extradited to the U.S. in December 2023. On January 2, 2024, Do Kwon appeared before a U.S. judge for the first time and pleaded not guilty to nine fraud charges.

During the hearing, Judge Engelmayer also set the date for Do Kwon's trial, which is now scheduled for January 26, 26. Pretrial motions must be filed by July 1, 2025, with responses due by August 11, 2025.

The delay to reschedule the hearing to April 10 is significant and will provide ample opportunity for both parties to prepare their cases. The additional four terabytes of evidence will be a focus for Kwon's legal team as they build their defense strategies.