Do Kwon, co-founder of Terraform Labs, is preparing to change his plea in a $40 billion fraud case in court.
Change in Do Kwon's Plea
Today, August 12, Do Kwon is expected in federal court in New York to present his plea change. Judge Paul Engelmayer has been notified of Kwon's plans and has instructed him to provide a complete narrative covering all aspects of the charges.
Prolonged Legal Battle and Its Implications
The charges against Kwon were filed in March 2023 and include securities fraud, wire fraud, market manipulation, and others. These charges are linked to the collapse of the algorithmic stablecoin TerraUSD (UST) and the governance token LUNA, leading to billions of dollars in losses for investors. Kwon was arrested in Montenegro after hiding from authorities for several months.
Market Reaction to Developments
After news of the potential plea change, LUNA's price fell to $0.00008, representing a decline of approximately 1 percent for the day. Analysts suggest that a plea deal may provide clarity to the legal situation, but it also signals that something went wrong, potentially dampening market enthusiasm.
Kwon's expected plea change could significantly influence the proceedings of the Terra collapse case and its implications for all involved parties.
