The founder of the collapsed Terra blockchain ecosystem, Do Kwon, who is under investigation, may reach an agreement with U.S. prosecutors.
State of Do Kwon's Case
According to court records from the Southern District of New York, Judge Paul Engelmayer instructed Kwon to prepare a full statement outlining the elements of any offenses he intends to plead guilty to. His legal team is also expected to prepare a written version to streamline the process.
Charges and Consequences
Kwon, extradited from Montenegro late last year after prolonged legal disputes, has been in U.S. custody without bail since December 2024. Previously, he denied nine felony counts, including securities fraud and money laundering, linked to the 2022 collapse of the Terra blockchain ecosystem, which wiped out about $40 billion from the crypto market.
Outlook and Next Steps
It remains unclear what agreement, if any, has been reached between Kwon's attorneys and federal prosecutors, although court filings confirm months of 'productive discussions'. The outcome of Tuesday's conference could redefine the trajectory of the case, which was originally slated for trial in January 2026.
The situation surrounding Do Kwon reflects the continued aggressive approach of U.S. authorities towards high-profile cases in the cryptocurrency sector, also evidenced by the recent conviction of Tornado Cash co-founder Roman Storm.
