Do Kwon to Change Plea in US Fraud Case Hearing Scheduled Tomorrow

Do Kwon, founder of Terraform Labs, may change his "not guilty" plea in federal court, as indicated by Judge Paul Engelmayer. A hearing is scheduled for Tuesday morning to discuss this potential change.

• Kwon faces multiple fraud and market manipulation charges related to the collapse of the Terra/Luna ecosystem.
• He was extradited to the U.S. in late 2024 after being detained in Montenegro for using a fake passport.
• A trial is tentatively set for January, pending review of six terabytes of discovery data.
• The judge's order did not clarify whether Kwon would plead guilty or if a plea deal exists.
• Kwon and Terraform were found liable for civil fraud by the SEC and ordered to pay $4.5 billion in penalties.
• The Terra network, valued at over $18 billion, collapsed when its algorithmic stablecoin UST lost its peg.