Recent reports indicate that Terraform Labs co-founder Do Kwon may be preparing to plead guilty in a U.S. criminal case linked to the collapse of the TerraUSD (UST) stablecoin.
The Collapse of UST Stablecoin
The charges against Kwon are related to the collapse of the algorithmic stablecoin UST, which occurred in May 2022 when its link to the LUNA token broke. This event led to the loss of billions in the crypto market and contributed to the downfall of other firms, including FTX.
Legal Implications and Plea Bargain Discussion
According to court filings, U.S. District Judge Paul A. Engelmayer has scheduled a hearing for August 12, 2025, to confirm whether Kwon will change his plea. Reports also suggest that discussions about a potential plea deal between prosecutors and Kwon's lawyers are underway, though details have not been finalized.
Impact on the Crypto Market
Reports of Kwon's potential guilty plea have negatively impacted crypto prices. The LUNA token is trading at $0.1588, down 4.59% over the past 24 hours. Additionally, Terra Classic (LUNC) has seen a decline of 3.77%, priced at $0.00006067.
The situation regarding Do Kwon and his potential guilty plea continues to stir concerns within the crypto industry, also touching on legal aspects in both the U.S. and South Korea.
