April 10, 2025 – A significant day is approaching for the Terra Classic ($LUNC ) and TerraClassicUSD ($USTC ) communities, as Do Kwon, co-founder of Terraform Labs, is set to appear at a U.S. court hearing. This session could play a critical role in shaping the ongoing legal proceedings stemming from the 2022 collapse of the Terra ecosystem. The outcome of the hearing may not only influence the trajectory of Kwon’s legal case but also have far-reaching consequences for the future of the Terra Classic network.

The U.S. District Court in New York had previously delayed Kwon’s hearing at the request of federal prosecutors. However, recent reports indicate that additional delays may occur as authorities are actively collecting new evidence, potentially altering the timeline and scope of the trial.

Investor Compensation: A $442 Million Relief Fund

In parallel with the legal developments, Terraform Labs is taking steps to address the financial losses of investors impacted by the 2022 LUNA and UST collapse. The company has set aside up to $442 million for compensation purposes.

To qualify for compensation, claimants must provide proof of holding LUNA or UST during the collapse. This can typically be done by retrieving transaction histories from the platforms where the tokens were held. Notably, even users who received post-collapse LUNA airdrops are eligible for compensation, as they are considered affected parties. The compensation program is available globally, without restrictions based on geography or exchange.

Kwon is currently facing nine fraud-related charges in the United States related to the estimated $60 billion collapse of the Terra ecosystem. He has pleaded not guilty, and his trial is scheduled to begin on January 26, 2026, with pretrial motions due by July 1, 2025. After being extradited from Montenegro in December 2023, Kwon remains in the U.S. as he prepares for trial.

Regulatory Environment: The Impact of Crypto Policy

As the legal situation unfolds, broader cryptocurrency regulation has once again become a focal point. Speculation has increased following former President Donald Trump’s recent decision to pardon the three BitMEX co-founders—Arthur Hayes, Benjamin Delo, and Samuel Reed—who had been convicted of money laundering. This move is seen by many as a potential indicator of a more lenient regulatory stance toward cryptocurrency under a future Trump administration.

In this context, some industry experts suggest that, should Kwon be cleared of charges, he could play a significant role in shaping the future of digital finance policy—especially given his early advocacy for decentralized finance and algorithmic stablecoins.

Looking Ahead: A Path Toward Recovery?

As both legal and financial matters continue to move toward resolution, cautious optimism is beginning to emerge within the Terra community. The resolution of ongoing lawsuits and the distribution of compensation could signal the beginning of a new chapter for the Terra Classic network—one rooted in greater transparency, enhanced community trust, and regulatory alignment.

In this evolving landscape, the outcome of Do Kwon’s April 10 hearing could be a defining moment for both the legal proceedings and the future of Terra Classic.

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