Kwon Do-hyung, the founder of Terraform Labs, who is on trial in the U.S. on charges including fraud related to the issuance of the stablecoin 'TerraUSD', is reportedly expected to change his previous stance of not guilty and acknowledge guilt.
According to Reuters on the 12th (local time), Paul Engelmayer, a judge of the U.S. District Court for the Southern District of New York, stated during Kwon's trial that Kwon plans to plead guilty to two charges of fraud and wire fraud.
The U.S. Attorney's Office for the Southern District of New York indicted Kwon Do-hyung on eight charges, including securities fraud, wire fraud, commodities fraud, and conspiracy to manipulate market prices, shortly after his arrest in Montenegro in March 2023. After being extradited from Montenegro at the end of last year, a conspiracy to commit money laundering charge was added. If all charges are acknowledged as guilty, he could face a maximum sentence of 130 years in prison. Kwon Do-hyung had claimed complete innocence during the indictment proceedings in January.
Speculations have arisen that the change in stance may be influenced by the inauguration of the Donald Trump administration, which has adopted a pro-cryptocurrency stance. Some in the cryptocurrency industry suggest that Kwon Do-hyung may request a pardon from President Trump in the future.
Additionally, the passage of the 'Genius Act', a stablecoin regulatory bill, by the U.S. Congress last month may also work in favor of Kwon Do-hyung. Judge Engelmayer asked during pre-trial discussions in June whether the bill, which was pending in Congress at the time, could affect the trial, to which Kwon's attorney responded, 'Of course it has an impact.'