Do Kwon May Plead Guilty to Fraud Charges in New York Court

Do Kwon May Plead Guilty in Terra Fraud Case

According to Cointelegraph, Do Kwon—the co-founder of Terraform Labs—who had previously pleaded not guilty in January 2025 to charges including securities fraud, market manipulation, money laundering, and wire fraud, may change his stance and admit to some of the allegations during a Tuesday court conference in New York.

This possible plea shift comes after months of negotiations between Kwon’s legal team and New York prosecutors. He is accused of playing a central role in the 2022 collapse of the Terra ecosystem—an event that wiped out an estimated $40 billion in investor funds.

After months on the run, Kwon was arrested in Montenegro for traveling with falsified documents. Following a year-long legal battle, he was extradited to the United States in 2024, where he has been held without bail for the past seven months.

Details of the potential plea agreement have not been disclosed. The court had previously scheduled the trial to begin in January 2026.