Terraform Labs co-founder Do Kwon is scheduled to stand trial on January 26, 2026, following his extradition to the US. Federal prosecutors allege that Terraform's ecosystem was built on deceptive practices, with the company's products requiring manipulation to sustain their value. Kwon is accused of misrepresenting the stability of TerraUSD, the algorithm stablecoin. The defense argues that Terraform's products were legitimate and functioned as described until market sentiment changed. The trial, expected to last four to six weeks, will address the classification of crypto under US law and the contention that LUNA, Terra's native token, qualifies as a security. The case involves extensive evidence, including six terabytes of data. Kwon remains in custody and also faces potential prosecutions in South Korea.



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