A federal judge overseeing the legal proceedings against Do Kwon has set a conference for Tuesday, where the Terraform Labs co-founder may change his plea.
On Monday, Judge Paul Engelmayer issued a court order requiring all parties to appear on Tuesday in the US District Court for the Southern District of New York (SDNY). This move suggests that Kwon might be preparing to alter his plea status regarding some or all charges he faces.
Earlier in January, after an extensive extradition battle in Montenegro, Do Kwon pleaded not guilty to nine felony counts. These charges include securities fraud, market manipulation, money laundering, and wire fraud.
Judge Engelmayer emphasized the need for the defendant to be ready to deliver a detailed narrative allocution, which should cover all elements of the offenses to which a guilty plea might be entered. He also encouraged legal counsel to assist in drafting this statement for clarity and efficiency during the court proceeding.
Kwon was indicted in March 2023 for his role related to the collapse of the Terra ecosystem, which eliminated approximately $40 billion in investor assets.
Related: Recent shifts in US cryptocurrency law could impact the case against Terraform Labs’ founder.
Following the crash in 2022, Kwon’s whereabouts remained unknown until Montenegrin authorities apprehended him for using forged travel documents. His defense team contested US and South Korean extradition requests in Montenegrin courts for over a year, until his transfer to US custody in December 2024.
Since his January plea of not guilty, Kwon has been held without bail. His criminal trial was initially expected to commence in January 2026, prior to the newly scheduled conference.
Potential Plea Deal Details
It remains uncertain what agreements, if any, Kwon’s legal team has reached with prosecutors. Court documents reveal ongoing productive discussions between interim US Attorney Jay Clayton’s office and Kwon’s lawyers over several months.
The scheduled conference follows just days after a related case where Tornado Cash co-founder Roman Storm was convicted for operating an unlicensed money transmitting business and awaits sentencing.
Separately, Terraform Labs resolved a civil lawsuit with the US Securities and Exchange Commission in 2024 by agreeing to approximately $4.5 billion in fines and penalties.
