US EditionTerra's Do Kwon to Change 'Not Guilty' Plea in US Fraud Case
NEW YORK CITY, NEW YORK, UNITED STATES, AUG 12 – Do Kwon faces nine felony charges including fraud and money laundering for orchestrating a scheme that caused TerraUSD and Luna to collapse, wiping out $40 billion, court records show.
- Do Kwon, co-founder of Terraform Labs, faces a federal hearing on Tuesday, August 12, 2025, in Manhattan regarding a criminal fraud case tied to TerraUSD's 2022 collapse.
- The case arises from TerraUSD and Luna's collapse that wiped out about $40 billion in value and triggered global crypto market instability and bankruptcies.
- Kwon was extradited from Montenegro at the end of 2024 after a two-year battle and previously pleaded not guilty to nine felony counts including fraud and money laundering.
- Judge Paul Engelmayer ordered Kwon to prepare a narrative allocution outlining offenses if he pleads guilty, while defense counsel assists drafting a statement for open court reading.
- If Kwon pleads guilty, he must explain his violations, and Terraform Labs must wind down operations, using remaining assets to pay creditors, reflecting intensified legal and financial consequences.
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According to court documents, Do Kwon, a South Korean cryptocurrency entrepreneur facing fraud charges in the United States over two digital currencies that lost about $40 billion in 2022, is expected to plead guilty today.
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Do Kwon Guilty Plea Expected in $40B Crypto Fraud Case
Do Kwon, the South Korean cryptocurrency entrepreneur accused of orchestrating one of the largest digital asset collapses in history, is expected to enter a guilty plea in the United States. Court records show that the co-founder of Terraform Labs will appear in Manhattan federal court on Tuesday in connection with charges over the $40 billion […] The post Do Kwon Guilty Plea Expected in $40B Crypto Fraud Case appeared first on TechJuice.
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Leaning Left1Leaning Right3Center1Last UpdatedBias Distribution60% Right
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- 60% of the sources lean Right
60% Right
L 20%
C 20%
R 60%
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