Terra's Do Kwon to Change 'Not Guilty' Plea in US Fraud Case
Main Idea
Terraform Labs' Do Kwon may change his 'not guilty' plea in a U.S. fraud case related to the collapse of the Terra/Luna stablecoin, following his extradition from Montenegro.
Key Points
1. Do Kwon previously pleaded 'not guilty' to multiple fraud charges but may change his plea at an upcoming hearing.
2. The case involves the collapse of Terraform Labs' Terra/Luna stablecoin, which lost its peg and caused significant financial losses.
3. Kwon was extradited to the U.S. at the end of 2024 after legal proceedings in Montenegro.
4. The U.S. Securities and Exchange Commission (SEC) has already ordered Kwon and Terraform Labs to pay $4.5 billion in penalties and disgorgement.
5. The Terra network, once valued at over $18 billion, collapsed rapidly after its algorithmic stablecoin failed.
Description
Terraform Labs founder Do Kwon may change his "not guilty" plea in federal court tomorrow, a judge said Monday. District Judge Paul Engelmayer, of the Southern District of New York, scheduled a hearing for Tuesday morning in an order saying he had been "advised that the defendant may enter a change of plea." Kwon previously pleaded "not guilty" to multiple fraud and market manipulation charges tied to the operation and subsequent collapse of Terraform's Terra/Luna stablecoin ecosystem. Kwon was ...
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