One of the most controversial figures in the crypto world, Do Kwon's court case has come back into the spotlight. The founder of Terraform Labs is still facing charges related to the failure of the algorithmic stablecoin TerraUST, which collapsed, and the question of when Do Kwon's trial will begin has finally been answered.

Last week, during the initial hearing at the Southern District Court of New York, Judge Paul Engelmayer announced that the case would start on January 26, 2026. Kwon denied nine serious charges, defended himself, and stated that he is "innocent." If convicted, he could face up to 130 years in prison.

A notable point in this case is that Kwon's lawyers requested an additional year for preparation, and despite the judge describing this as "unprecedented" during their tenure, he accepted the request. The U.S. government explained that this lengthy period was necessary due to six terabytes of evidence, four phones seized from a prison in Montenegro, social media accounts, and encrypted data. They also added that some crypto keys appear to be lost.

The collapse of TerraUST's approximately $40 billion market value in 2022 led to chain reactions of bankruptcies in the crypto sector. Prosecutors allege that Kwon continued to assure the public despite knowing that TerraUST depended on an external firm (Jump Crypto) to maintain its stability. They describe this as a "Potemkin village" — referring to misleading statements that hide how vulnerable the system actually is.

An interesting point is that this case is being heard in the same court where high-profile crypto figures like the founder of FTX and the former CEO of Celsius are being tried. Once the official start date of Do Kwon's trial is set, the crypto community continues to closely follow developments related to this case. Kwon is also expected to face similar charges in South Korea.