Do Kwon on the Brink: Terra Founder May Plead Guilty in $40B UST Collapse Case
Another crypto heavyweight teeters toward accountability—or just a tactical retreat?
The man behind Terra's infamous meltdown could flip his script. Do Kwon, whose algorithmic stablecoin experiment vaporized $40 billion in investor funds, is reportedly considering a guilty plea.
From 'stablecoin visionary' to courtroom contrition? The legal noose tightens as prosecutors pile evidence of financial alchemy gone wrong. Remember when 'decentralized' meant immunity? The SEC begs to differ.
Wall Street snickers into its bourbon—nothing spices up a bear market like schadenfreude. Meanwhile, retail bagholders still stare at wallets full of LUNA 2.0, the participation trophy of crypto collapses.
Will Kwon's possible plea deal set precedent... or just prove that in crypto, the house always wins—even when it burns down?
Do Kwon could plead guilty in court to criminal charges
Terraform Labs co-founder Do Kwon could be set to switch to a guilty plea a few months after pleading not guilty, court filing shows.
"The court has been advised that the defendant may enter a change of plea," an order filed by Judge Engelmayer on Monday in the US District Court for the Southern District of New York (SDNY) stated.
Judge Engelmayer ordered that Kwon prepare to deliver a detailed statement in court, addressing each charge he plans to admit and urged his lawyers to prepare it in advance.
"...the defendant should be prepared to give a narrative allocution that incorporates all elements of the offense(s) to which the defendant is pleading guilty."
Kwon is expected to appear in court for a Tuesday conference to air his potential new position.
The Terraform's co-founder pleaded not guilty in January to several charges including conspiracy to defraud, commodities and securities fraud, wire fraud, market manipulation, and conspiracy to commit money laundering.
The charges stem from Kwon’s alleged contribution to the TerraUSD (UST) algorithmic stablecoin collapse in May 2022, which went on to wipe the token's entire market cap of about $40 billion. UST failed following a flaw in its mint-and-burn mechanism with the LUNA token.
Terraform Labs collapsed alongside UST in 2022, a key event that spiralled into the crash of several other crypto platforms including the FTX crypto exchange.
Do Kwon’s location was unknown for months after UST’s collapse before his arrest in Montenegro for attempting to travel using fake documents. He was eventually extradited to the US despite his legal team’s effort to stop the action in Montenegro courts.
