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United States v. Kwon, 23 Cr. 151 (PAE) (Terraform Labs Fraud)

Victim Notice in United States v. Do Hyeong Kwon, 23 Cr. 151 (PAE), assigned to U.S. District Judge Paul A. Engelmayer

 

The defendant, Do Hyeong Kwon, is alleged to have orchestrated schemes to defraud purchasers of cryptocurrencies issued by Terraform Labs PTE, Ltd. (“Terraform”), such as LUNA and TerraUSD.  Among other things, Kwon is alleged to have made false and misleading claims regarding the stability and efficacy of Terraform’s cryptocurrency stablecoin protocol, its use of blockchain technology, and its development of functioning and reliable financial technologies.

The next status conference in this matter will take place March 6, 2025, at 11 am, at the Thurgood Marshall U.S. Courthouse, 40 Foley Square, New York, New York, Courtroom 1305.  Trial in this matter is scheduled to begin on January 26, 2025.

The alleged victims of Kwon’s crimes have the following rights:

  1. The right to be reasonably protected from the accused.
  2. The right to reasonable, accurate, and timely notice of any public court proceeding, or any parole proceeding, involving the crime or of any release or escape of the accused.
  3. The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding.
  4. The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.
  5. The reasonable right to confer with the attorney for the Government in the case.
  6. The right to full and timely restitution as provided in law.
  7. The right to proceedings free from unreasonable delay.
  8. The right to be treated with fairness and with respect for the victim’s dignity and privacy.
  9. The right to be informed in a timely manner of any plea bargain or deferred prosecution agreement.
  10. The right to be informed of the rights stated herein and the services described in section 503(c) of the Victims’ Rights and Restitution Act of 1990 and provided contact information for the Office of the Victims’ Rights Ombudsman of the Department of Justice.

The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims. If you believe you are a victim of the offense charged, our Victim/Witness Unit can make sure that you are notified of important stages of the case to help you exercise your rights. In addition, our Victim/Witness Unit can help refer you to agencies that provide other services to witnesses, such as compensation (under certain circumstances) and counseling. If you believe you are a victim, of if you would like information or assistance with referrals, please contact: Wendy.Olsen@usdoj.gov

Updated January 10, 2025