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A pretrial conference is scheduled for March 6, 2025, with updates expected by February 27. Judge Paul Engelmayer has suggested discussions on potential pleas; nonetheless, both sides believe the case will move forward to trial.

Federal prosecutors contend that the Terraform ecosystem operated under deceptive practices. Assistant U.S. Attorney Jared Lenow characterized Terraform’s operations as a "Potemkin village," asserting that the company's products lacked

stability and needed manipulation to maintain their value.

It was also noted that Kwon allegedly misrepresented the reliability of the algorithmic stablecoin TerraUSD (UST).

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