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Do Kwon may change his defense in the TerraUSD case or welcome an opportunity for a turnaround.
On August 12, after being indicted on fraud and Money Laundering charges by U.S. prosecutors for years, Terraform Labs co-founder Do Kwon may plead guilty. According to a scheduling order submitted by the U.S. District Court for the Southern District of New York on Monday, Judge Paul Engelmayer wrote, "The court has been informed that the defendant may change his plea."
The judge stated in the order: "...the defendant should be prepared to make a narrative allocution covering all the elements of the charges to which he pleaded guilty." A meeting to discuss this matter will be held on Tuesday morning.
Kwon, the CEO of TerraForm, has not immediately responded to requests for comment from his lawyer. Kwon stated that he did not plead guilty in January of this year. In March 2023, Kwon was criminally charged with conspiracy to commit fraud, commodity fraud, wire fraud, securities fraud, conspiracy to commit fraud, and conspiracy to engage in market manipulation and Money Laundering. These charges are related to his role in the algorithmic stablecoin Terra USD (UST). UST experienced a severe collapse in 2022, resulting in billions of dollars in losses.