Key Takeaways:
- Judge Paul Engelmayer scheduled an August 12 court conference where Do Kwon may change his plea in the Terraform Labs fraud case.
- Kwon faces nine felony charges linked to the $40 billion Terra ecosystem collapse and has been held without bail for seven months.
- The potential plea follows months of discussions between Kwon’s defense and US prosecutors, with terms of any deal still undisclosed.
Terraform Labs co-founder Do Kwon may be preparing to change his plea in his US criminal case, with a court conference set for August 12 before Judge Paul Engelmayer in the Southern District of New York.
Kwon, who has been held without bail for seven months, initially pleaded not guilty in January to nine felony counts, including securities fraud, market manipulation, money laundering, and wire fraud.
Terraform co-founder Do Kwon may plead guilty in a US criminal fraud case tied to the $40 billion collapse of the TerraUSD stable coin in 2022 https://t.co/Sx0VFRLe4Q
— Bloomberg (@business) August 11, 2025
The charges stem from the 2022 collapse of the Terra ecosystem, which wiped out about $40 billion in investor assets.
After months on the run, Kwon was arrested in Montenegro in 2023 for using falsified travel documents and fought extradition to both the US and South Korea before being transferred to US custody in December 2024.
His trial had been scheduled for January 2026, but prosecutors, led by interim US Attorney Jay Clayton, have reportedly held “productive discussions” with his defense team in recent months.
The potential plea shift follows the court’s recent conviction of Tornado Cash co-founder Roman Storm and comes after Terraform Labs agreed in 2024 to pay $4.5 billion to settle SEC charges.
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