Terraform Labs Founder May Plead Guilty in TerraUSD Collapse Trial
Do Kwon, founder of Terraform Labs, is expected to change his not-guilty plea in the $40 billion TerraUSD collapse case. Kwon faces nine felony charges including fraud, market manipulation, money laundering, and conspiracy.
According to Bloomberg, a judge in the Southern District of New York scheduled a plea change hearing for August 12. The judge warned that if Kwon pleads guilty, he must explain how he broke the law. Kwon was extradited from Montenegro earlier this year and pleaded not guilty in January.
Terra-Luna, his project, was once valued at $40 billion and backed by major investors. In June 2022, the algorithmic stablecoin UST and Luna token lost value, triggering a collapse that impacted the entire crypto sector.
