Co-founder of Terraform Labs, Do Kwon, may face several years in prison after being charged by US prosecutors with fraud and money laundering.
According to the summons filed on Monday at the Southern District Court of New York, Judge Paul Engelmayer stated: "The court has been informed that the defendant may change his initial plea", and requested Do Kwon to prepare a "detailed plea including all elements of the crime" when pleading guilty. The meeting to discuss this matter is expected to take place on Tuesday morning.
Do Kwon's lawyer, who was also the former CEO of Terraform, has not yet commented. Previously, Kwon did not plead guilty in January of this year.
Kwon was criminally indicted in March 2023 with charges including conspiracy to commit fraud, commodity fraud, wire fraud, securities fraud, market manipulation, and money laundering. These charges are related to his role with the algorithmic Stablecoin TerraUSD (UST), which collapsed in 2022, wiping out billions of dollars in market value.
Algorithmic Stablecoin maintains price stability through market incentive mechanisms using algorithms. Terra used the Governance Token Luna to maintain a fixed price for UST.
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The article Terraform Co-founder Do Kwon May Soon Plead Guilty first appeared on CoinMoi.
