Do Kwon, co-founder of Terraform Labs, is facing a US fraud case over the $40 billion collapse of the TerraUSD stablecoin in 2022. A US District Judge has scheduled a change of plea hearing for Tuesday, where Kwon may plead guilty to violating the law. If he does, Kwon will be required to explain how his actions led to the catastrophic collapse of the stablecoin. The US government is seeking accountability from Kwon and Terraform Labs over the incident, which has significant implications for the cryptocurrency industry.
Source: https://www.bloomberg.com/news/articles/2025-08-11/do-kwon-may-plead-guilty-in-us-case-over-terraform-collapse