What You Need to Know
- Do Kwon may change his “not guilty” plea at a court appearance set for Tuesday, according to a judge’s announcement.
- Previously, Kwon entered a not guilty plea concerning several fraud charges linked to Terraform’s operations and the subsequent fall of the Terra/Luna stablecoin ecosystem.
- He and the Terraform team were found liable in civil court for fraud by the SEC.
The founder of Terraform Labs, Do Kwon, is anticipated to alter his plea to guilty during a federal court hearing scheduled for tomorrow. District Judge Paul Engelmayer from the Southern District of New York has arranged the hearing following indications that Kwon might be changing his plea. This follows earlier not guilty pleas to various fraud and market manipulation charges tied to the collapse of the Terra/Luna stablecoin system.
Do Kwon
Kwon was extradited to the United States in late 2024 after facing issues with Montenegrin authorities and was apprehended for attempting to exit the country with a forged passport. A trial is provisionally set for next January as prosecutors need to review six terabytes of evidence collected in the case. The latest order from Judge Engelmayer doesn’t clarify if Kwon will plead guilty to all counts or if a concession has been reached with prosecutors. The defense team is advised to go over any plea arrangements beforehand.
Kwon and Terraform have already been ruled liable for civil fraud and ordered to pay numerous penalties as determined by the U.S. Securities and Exchange Commission. The Terra network, which once held significant market value, disintegrated rapidly after the algorithmic stablecoin TerraUSD experienced a loss of its peg amidst market pressures.
