Terraform's Do Kwon Set to Plead Guilty in $40 B TerraUSD Fraud

Terraform Labs co-founder Do Kwon is expected to plead guilty on 12 August in a U.S. criminal fraud case linked to the 2022 collapse of the TerraUSD stablecoin, which erased about $40 billion in market value and shook the broader cryptocurrency market.

U.S. District Judge Paul Engelmayer has scheduled a change-of-plea hearing for 10:30 a.m. in Manhattan federal court and ordered Kwon to be prepared to explain the revised plea. Kwon was extradited from Montenegro on 31 December 2024 and initially pleaded not guilty to nine felony counts, including securities fraud, market manipulation, money laundering and wire fraud.

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