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- 📢 Exclusive on Gate Square — #PROVE Creative Contest# is Now Live!
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Do Kwon is expected to plead guilty in the U.S. on Tuesday morning to charges including conspiracy to commit fraud.
On August 12, after being indicted for fraud and money laundering 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 elements of the guilty plea." A hearing on the matter is set for Tuesday morning. Kwon's attorney, who serves as CEO of TerraForm, has not immediately responded to requests for comment. Kwon had previously stated in January of this year that he would not plead guilty. Kwon was criminally charged in March 2023 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 relate to his role in the algorithmic stablecoin Terra USD (UST). UST experienced a severe crash in 2022, resulting in billions of dollars in losses.