Terraform Labs co-founder Do Kwon may change his stance in the US criminal case against him. US District Judge for the Southern District of New York, Paul Engelmayer, has scheduled a hearing for August 12, where Kwon may announce his intention to plead guilty to some or all charges, Bloomberg reported.
Kwon had previously denied involvement in nine criminal counts, including securities fraud and money laundering. His case is tied to the collapse of the Terra ecosystem, which cost investors approximately $40.000 billion.
Court Turn After a Year of Resisting Extradition
On Monday, a court order was filed requiring both parties to attend the hearing and prepare a written statement on behalf of the defendant. This statement must include all elements of the offenses to which he intends to plead guilty and will be read in open court.
Kwon was arrested in Montenegro in 2023 for using forged documents and spent more than a year contesting extradition requests from both the US and South Korea. In December 2024, he was handed over to US authorities. In January 2025, he pleaded not guilty to all charges and has since remained in custody without bail.
Charges and Case Background
In March 2023, Kwon was charged with securities fraud, market manipulation, money laundering, and wire fraud.
Prosecutors believe he was involved in the collapse of the Terra and UST tokens in 2022, which led to massive investor losses.
After the collapse, Kwon spent several months in hiding before being detained by Montenegrin police. In December 2024, the Montenegrin Minister of Justice approved his extradition to the US.
Possible Plea Deal
Before the hearing, the trial was set to begin in January 2026. Court documents indicate that the team of Acting US Attorney for the Southern District of New York Jay Clayton and Kwon’s lawyers had been engaged in “productive negotiations” for several months. As of publication time, it remained unclear what kind of plea agreement might be under consideration.
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