11.08.2025 23:09

Do Kwon, the co-founder of Terraform Labs, is poised to admit guilt in a significant US criminal fraud case. This case centers around the calamitous 2022 collapse of the TerraUSD stablecoin, an event that wiped out approximately $40 billion in market capitalization and sent shockwaves through the entire cryptocurrency ecosystem.

A change-of-plea hearing is scheduled for August 12th at 10:30 a.m. in Manhattan federal court, presided over by U.S. District Judge Paul Engelmayer. Kwon has been instructed to be fully prepared to articulate his altered plea before the judge. His presence in court follows his extradition from Montenegro on December 31st, 2024, after initially rejecting the charges.

Initially facing nine serious felony charges—including securities fraud, market manipulation, money laundering, and wire fraud—Kwon's anticipated guilty plea represents a significant development. This admission of guilt will preempt a trial originally slated for January 2026. The implications of this plea are far-reaching, potentially impacting related civil lawsuits and regulatory investigations resulting from the TerraUSD debacle, one of the most substantial financial collapses in the history of digital assets.

This information was compiled from internet sources. The original source material identified the use of AI in its generation and curation.