Regarding the latest developments concerning the trials of Terra Classic (LUNC) founder Do Kwon and the developer company (Terraform Labs), here are the key updates as of January 2026:
Criminal Trial Date: The criminal trial for Do Kwon in the United States has been scheduled to begin on January 26, 2026, before the federal court in Manhattan.
Charges and Admission: Kwon faces charges including securities fraud, wire fraud, commodities trading violations, and money laundering. Although he has previously pleaded not guilty, reports from late 2025 indicated that prosecutors may seek initial rulings or sentencing recommendations of between 12 to 15 years in prison if fully convicted.
Company Liquidation: On January 3, 2026, it was officially announced that Terraform Labs has ceased its legal existence and has been fully liquidated, meaning the governance of the "Terra Classic" system has been fully transferred to the decentralized community, with no control remaining from the founders.
Compensation: The deadline for submitting claims for crypto losses ended in May 2025, and current procedures are underway to distribute remaining assets through the "Wind Down Trust" to compensate affected parties according to the approved bankruptcy plan.
Fate of the Currency (LUNC): Ongoing burn operations led by Binance (the most recent being the burning of 5.33 billion tokens in January 2026) continue to reduce the massive supply, while the currency remains under the influence of these legal decisions and community governance.
