11.08.2025 23:23

Do Kwon, the founder of the now-defunct Terra (LUNA) project, is expected to admit guilt in a significant US fraud case stemming from the catastrophic $40 billion collapse of the TerraUSD stablecoin in 2022. This highly anticipated plea is scheduled for a hearing before US District Judge Paul Engelmayer in New York on Tuesday.

Judge Engelmayer's order, issued earlier today, explicitly requires Kwon to provide a comprehensive explanation of his alleged violations should he enter a guilty plea. This development marks a dramatic turn after Kwon vehemently proclaimed his innocence just this past January, following a protracted two-year extradition battle that saw intense legal maneuvering between the United States and his native South Korea.

The legal battle surrounding Kwon and the implosion of the Singapore-based Terraform Labs, the entity behind TerraUSD, has been a major focus of both US and South Korean authorities. Kwon's actions are considered to have played a pivotal role in the cryptocurrency market's turmoil during the spring of 2022, a period of significant instability that also contributed to the downfall of the prominent crypto exchange FTX. The ramifications of this case continue to resonate within the cryptocurrency industry.

It is important to note that this information is not financial advice. Further updates and analysis regarding this developing story can be found from various internet sources.