From Not Guilty to Guilty: Do Kwon’s TerraUSD Fraud Reversal

Terraform Labs founder Do Kwon to plead guilty to fraud charges in crypto collapse case. A court hearing is set for today in New York to discuss a possible change of plea.

Source: Wu Blockchain

According to reports Do Kwon is set to change his plea to guilty in a Manhattan court, facing fraud and conspiracy charges tied to the $40 billion Terra USD and Luna crash.

Court Decision Today What to expect

According to filing papers "The court has been advised that the defendant may enter a change of plea," an order filed by Judge Engelmayer on Monday in the US District Court for the Southern District of New York (SDNY) stated.

Source: X

Judge Engelmayer ordered that Do Kwon prepare to deliver a detailed statement in court, addressing each charge he plans to admit and urged his lawyers to prepare it in advance. "The defendant should be prepared to give a narrative allocution that incorporates all elements of the offense(s) to which the defendant is pleading guilty."  Kwon is expected to appear today for a hearing.

A guilty plea may end the proceedings in the United States and can lead to his separate prosecution in South Korea. If approved, it would be one of the most well-known guilty pleas in the history of cryptocurrency, establishing a standard for the enforcement of international crime.

Do Kwon Past Cases in Brief

Previously, he had entered a not-guilty plea in response to a nine count indictment, which includes charges of securities fraud, wire fraud, fake commodities, and a money laundering conspiracy. The South Korean was arrested in Montenegro in March 2023 while using fake passports. Singapore-based Terraform's TerraUSD, which rocked the cryptocurrency market in the first quarter of 2022 which shook Crypto Exchanges. He and Terraform Labs were previously found liable for civil fraud in a US SEC case and ordered to pay US$4.5 billion in penalties.

How Will Defense Lawyers Prepare Do Kwon for His Guilty Plea?

Before the hearing, defense lawyers will make sure to review the plea agreement with him and influence him in crafting a narrative statement that explains the specific counts he intends to enter a confession of guilt. The defense attorney has been urged by the court to help create a statement that will be publicly read during the hearings.

Could Today’s Hearing Be the Final Chapter in This Case?

It totally depends on the streamline proceedings in the US or whether it may proceed to investigate in South Korea. Because Do Kwon also has separate criminal records for fraud and financial misconduct charges under capital market laws. The case gets a new direction today after the case hearing, it could close chapter or may be forwarded to next date.

If the confession of guilt is accepted it would mark a noticeable turn in the Crypto Market sector. The result could lead to set an important example among Crypto Criminals. That is how crypto fraud is prosecuted in the future.