Do Kwon Faces Fraud Charges Over $40 Billion Crypto Bust
By Reuters | 11 Aug, 2025

The S. Korean founder of Terraform Labs faces US charges related to the 2022 implosion of Luna and TerraUSD cryptocurrencies.

Do Kwon, the South Korean cryptocurrency entrepreneur facing U.S. fraud charges over two digital currencies that lost an estimated $40 billion in 2022, is expected to enter a guilty plea, court records showed on Monday. 

In a brief scheduling order, U.S. District Judge Paul Engelmayer said he had been advised that Kwon may change his plea and set a hearing for Tuesday at 10:30 a.m. EDT (1430 GMT) in Manhattan federal court. 

Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, had previously pleaded not guilty to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.

Neither lawyers for Kwon nor the Manhattan U.S. Attorney's office, which brought the charges, immediately responded to requests for comment.

(Reporting by Luc Cohen in New York; Editing by Mark Porter and Marguerita Choy)