In a notable development, attorneys representing Do Kwon, the embattled co‑founder of Terraform Labs, have formally requested that the next court‑scheduled status conference be postponed. This motion arrives just weeks after the lead federal prosecutor handling the case abruptly stepped down, injecting fresh uncertainty into the proceedings.
Kwon, who was extradited in December 2024 to face U.S. charges including securities fraud, commodities fraud, wire fraud, and related conspiracies, stands accused of orchestrating a massive crypto‑asset fraud that wiped out approximately $40 billion in investor value . His pre‑trial conference—originally set for mid‑June—has now been put into question, as his legal team contends that the U.S. Attorney’s Office is undergoing key internal changes.
Central to their request is the recent resignation of Jared Lenow, the deputy prosecutor who had led the case in the Southern District of New York. According to court filings, the defense argued that Lenow played an integral role in trial preparation and that his exit disrupts continuity. The attorneys maintain that without his direct involvement, rescheduling is necessary to maintain fairness and due process. While their filing did not disclose Lenow’s reasons for stepping down, it underscores the significant impact his departure could have on witnesses, discovery timelines, and overall case strategy.
Kwon’s trial has already faced multiple delays; initially slated for January 2026, it was pushed to February 17, 2026, amid scheduling conflicts related to extensive evidence review . Prosecutors have consistently affirmed that recent shifts in Department of Justice policy—particularly guidelines narrowing crypto enforcement jurisdiction—will not affect their prosecution strategy .
If the court grants the defense’s motion to delay, the next status conference may be rescheduled later this summer. Otherwise, courtroom activity is expected to resume as planned, putting renewed focus on DOJ leadership changes and procedural adherence ahead of the high‑stakes trial.