Do Kwon, the South Korean cryptocurrency entrepreneur accused of orchestrating one of the largest digital asset collapses in history, is expected to enter a guilty plea in the United States.
Court records show that the co-founder of Terraform Labs will appear in Manhattan federal court on Tuesday in connection with charges over the $40 billion crash of TerraUSD and Luna in 2022.
U.S. District Judge Paul Engelmayer issued a brief scheduling order on Monday, noting he had been advised that Kwon may change his plea. The hearing is scheduled for 10:30 a.m. EDT (1430 GMT).
Background on Charges Against Do Kwon
Kwon, who developed the Singapore-based Terraform Labs’ TerraUSD stablecoin and its sister token Luna, had previously pleaded not guilty to a nine-count indictment. The charges include securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. Prosecutors allege that his actions misled investors and contributed to massive losses when the tokens collapsed.
Neither Kwon’s legal team nor the Manhattan U.S. Attorney’s Office, which brought the case, has commented on the latest developments.
The implosion of TerraUSD and Luna in 2022 sent shockwaves through the cryptocurrency market, erasing an estimated $40 billion in value and sparking global calls for stricter digital asset regulations. If the Do Kwon guilty plea is confirmed, it will mark a major turning point in a case closely watched by both regulators and the crypto industry.