Terraform Labs co-founder Do Kwon, facing multiple fraud charges over the collapse of TerraUSD and Luna, is expected to change his plea during a court conference in Manhattan this Tuesday at 10:30 a.m. EDT. The U.S. District Court for the Southern District of New York issued a notice stating that Kwon “may enter a change of plea,” with Judge Paul Engelmayer requesting a narrative allocution outlining the offense elements for any guilty plea.
From not guilty to possible deal
In January, Kwon pleaded not guilty to nine felony counts, including securities fraud, wire fraud, commodities fraud, market manipulation, and conspiracy to commit money laundering. These charges stem from the alleged $40 billion collapse of TerraUSD (UST) and Luna, which shook the global crypto market in 2022.
Behind the timing
Court filings indicate “productive discussions” between Kwon’s defense team and prosecutors. Legal analysts believe a plea deal could lead to reduced charges in exchange for cooperation, avoiding a lengthy trial and potentially mitigating broader scrutiny on the crypto sector.
What’s next
The change of plea, if confirmed, would mark a turning point in the case and shift the current trial schedule, originally set for January 2026. It could also influence other ongoing investigations tied to Terraform Labs and its executives.
source: Reuters, Cointelegraph, The Block
