Kwon, co-founder of Singapore-based Terraform Labs, faces a nine-count indictment for securities, wire, and commodities fraud, and money laundering conspiracy, linked to the 2022 collapse of TerraUSD and Luna that erased about $40 billion in investor value
Do Kwon, the South Korean entrepreneur behind the collapsed cryptocurrencies TerraUSD and Luna, is expected to change his plea to guilty in a U.S. fraud case, according to federal court filings on Monday.
A scheduling order from U.S. District Judge Paul Engelmayer indicated that Kwon may alter his earlier not-guilty plea, with a hearing set for Tuesday at 10:30 a.m. EDT in Manhattan.
Kwon, co-founder of Singapore-based Terraform Labs, faces a nine-count indictment alleging securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. The charges stem from the 2022 implosion of TerraUSD and Luna, which wiped out an estimated $40 billion in investor value.
Neither Kwon’s legal representatives nor prosecutors from the Manhattan U.S. Attorney’s Office have issued public statements regarding the potential plea change.
The case remains one of the highest-profile cryptocurrency fraud prosecutions in recent years.
