Do Kwon's Expected Guilty Plea in $40 Billion Crypto Fraud Case
South Korean entrepreneur Do Kwon, facing U.S. fraud charges over the TerraUSD and Luna currencies, is expected to plead guilty. Previously pleading not guilty, Kwon may change his plea in a hearing set for Tuesday. Kwon faces charges including securities fraud and money laundering conspiracy.
Do Kwon, the South Korean entrepreneur behind two digital currencies that suffered significant losses, is anticipated to plead guilty to U.S. fraud charges, according to court documents revealed on Monday.
U.S. District Judge Paul Engelmayer noted in a scheduling order that Kwon might alter his not-guilty plea, setting a court hearing for Tuesday morning in Manhattan. The charges stem from Kwon's co-founding of Terraform Labs and the development of the TerraUSD and Luna currencies, which collectively lost around $40 billion in 2022.
Kwon faces a nine-count indictment, including serious allegations such as securities fraud, wire fraud, and money laundering conspiracy. Neither Kwon's legal representatives nor the Manhattan U.S. Attorney's office have provided comments on the development.
(With inputs from agencies.)
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