Tuesday, Do Kwon, co -founder of Terraform Labs, could change his plea in a criminal case that has upset the crypto for two years. Accused of multiple frauds after the collapse of Terra in 2022 having erased 40 billion, Do Kwon faces a pivotal moment. This hearing could not only redefine its judicial strategy, but also mark a turning point for the entire crypto industry.
In short
- On Tuesday, Do Kwon could change his plea in a criminal case shaking the crypto industry for two years.
- Arrested in Montenegro, he faces several serious accusations linked to the collapse of the terra.
- This audience could mark a major judicial turning point and permanently influence the future of the global crypto sector.
Back on a hectic judicial journey at the heart of the Do Kwon affair
Since the fall of the terra, Do Kwon has experienced an international run worthy of a thriller. After several months of the run, the Montenegro authorities arrested Do Kwon for the use of falsified travel documents. The United States and South Korea then engaged in a long legal battle to obtain its extradition.
After several months of disappearance, the Montenegro authorities arrested Do Kwon for the use of falsified travel documents. They had initially set his criminal trial at January 2026, but Tuesday's conference could redistribute all the cards.
Judge Engelmayer clarified that in the event of a change of plea, Kwon will have to read publicly a declaration detailing his offenses. A moment that could be fraught with consequences, both for him and for the crypto industry.
Behind -the -scenes negotiations
No official information has filtered, but court documents mention discussions between the lawyers of Kwon and Jay Clayton. A advocacy agreement could reduce the duration of the trial, avoid an uncertain verdict and, potentially, limit the penalty incurred.
This announcement occurs in a tense context for the crypto: last week, the same court found guilty novel Storm, co -founder of Tornado Cash, of having exploited an unauthorized money transfer service.
In parallel, Terraform Labs has already concluded a massive civil agreement with the SEC, agreeing to pay $ 4.5 billion into fines and penalties. This same dry, which recently launched the Crypto project to modernize regulation in the United States, remains at the heart of regulatory debates in the sector. If Do Kwon pleads guilty this Tuesday, it would be a historic turning point in one of the most emblematic cases in the crypto sector.
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