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14h ago

Do Kwon Set to Change Plea in $40 Billion Terra Fraud Case

Scheduling an August 12 conference signals a shift toward plea bargaining that could reshape Kwon’s sentencing, with broader consequences for crypto prosecutions.

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Do Kwon pleads guilty to defrauding crypto investors in $40 billion Terra collapse
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Terra's do kwon to change 'not guilty' plea in us fraud case

Overview

  • A Southern District of New York court scheduled an August 12 hearing in Manhattan to consider Terraform Labs co-founder Do Kwon’s potential change of plea in his criminal case.
  • Kwon faces nine felony charges, including securities fraud, wire fraud, commodities fraud, market manipulation and money-laundering conspiracy tied to the 2022 collapse of the TerraUSD/LUNA ecosystem.
  • Judge Paul Engelmayer instructed Kwon to deliver a detailed narrative allocution outlining the facts and legal elements of the offenses he may admit to.
  • A guilty plea or negotiated settlement could replace the planned January 2026 trial and may involve Kwon’s cooperation in related crypto investigations.
  • The upcoming appearance follows Kwon’s extradition from Montenegro after a months-long detention and an earlier SEC civil ruling that ordered about $4.5 billion in penalties and disgorgement.