Terra Classic Sinks As Terraform Founder Do Kwon Set To Stand Trial In 2026 For Alleged $40 Billion Fraud

Do Kwon, co-founder of disgraced Terraform Labs, will face trial in a year’s time for his alleged role in the $40 billion criminal fraud case involving the collapse of Terra Classic (CRYPTO: LUNC) and sister stablecoin TerraUSD (USTC), according to a report on Wednesday.

What Happened: U.S. District Judge Paul Engelmayer set a trial date for Jan. 26, 2026, in New York, expected to last for four to eight weeks, Bloomberg reported.

Kwon has been accused of various counts of commodities fraud, conspiracy, securities fraud, and wire fraud in connection with the collapse of LUNC and stablecoin TerraUSD in 2022, which caused an estimated $40 billion loss.

The drop had far-reaching consequences, undermining investor confidence and resulting in prolonged months of lower valuations, also known as a bear market.

See Also: Ethereum Co-Founder Vitalik Buterin Offloads Nearly A Million In Memecoins To Benefit Charities — Dogecoin’s Sister Coin NEIRO Plunges 3% After Sale

Kwon was extradited from Montenegro to face these charges in a U.S. court. He pleaded not guilty to these charges.

Do Kwon’s extradition ended a legal tug-of-war between the U.S. and South Korea, his native country, over competing extradition requests.

Price Action: At the time of writing, LUNC was exchanging hands at $0.0001036, down 2.77% in the last 24 hours, according to data from Benzinga Pro. The coin has lost nearly 20% of its value in the last month.

Photo Courtesy: July Ko On Shutterstock.com

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