Do Kwon May Plead Guilty in Fraud Case

Do Kwon, co-founder of TerraForm Labs, is considering a guilty plea in a U.S. fraud and money laundering case. A recent court order from Judge Paul Engelmayer in the Southern District of New York indicates that Kwon may change his plea. A conference to discuss this matter is set for Tuesday morning. Kwon's lawyers have not commented on the situation. He previously pleaded not guilty in January. In March 2023, Kwon faced multiple criminal charges, including conspiracy to defraud and securities fraud, all stemming from the collapse of the Terra USD stablecoin in 2022, which led to significant financial losses. Algorithmic stablecoins like Terra rely on market incentives to maintain price stability. Terra was connected to the governance token Luna in this effort.