Do Kwon, co-founder of Terraform Labs, is preparing to change his plea on August 12, 2025, marking a significant legal turning point in the months-long case.
This action will greatly impact the processing of allegations related to serious fraud and money laundering. The case has attracted global cryptoasset industry attention.
- Do Kwon is preparing to change his plea in court on August 12, 2025.
- He faces multiple serious charges including securities fraud and money laundering.
- LUNA Token price has been negatively impacted, unable to recover despite the cryptoasset market's upward trend.
How will Do Kwon change his plea on August 12, 2025?
Do Kwon is expected to submit a new plea in the New York court, according to the US federal court.
Previously, he had pleaded guilty to 9 felony charges including securities fraud, payment chain fraud, money laundering, and commodity fraud. Judge Paul Engelmayer requested all involved parties to be present to hear him comprehensively present the elements of the charges to ensure transparency and efficiency in the trial. Changing the plea could have far-reaching implications for the upcoming legal process.
The trial will encourage lawyers to help the defendant prepare a plea statement that can be publicly read in court to ensure clarity and effectiveness.
Judge Paul Engelmayer, 11/8/2025, according to US federal court records
What legal situation is Do Kwon facing?
Do Kwon has suffered significant losses due to lawsuits in multiple countries and law enforcement seizures of assets, including cryptoassets accumulated during his time at Terraform Labs.
His potential acceptance of a plea deal could result in a legal fate similar to FTX founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence in the US. This situation demonstrates the case's severity and creates significant pressure on Kwon in his prolonged legal battle.
What is the impact of Do Kwon's legal situation on LUNA's price?
LUNA's price has dramatically dropped, from a previous market capitalization of over $30 billion to approximately $109 million currently. Despite the global cryptoasset market's recovery trend, the LUNA Token has been unable to regain its position due to legal implications and weakened market confidence.
In the past 24 hours, LUNA decreased by an additional 3%, bringing its annual decline to around 50%. Increasingly fierce competition in the blockchain ecosystem and deep suspicions about Terra Luna have made LUNA's price appreciation prospects negative.
LUNA's price remains unrecovered despite the cryptoasset market's return to an upward trend, under pressure from legal factors and loss of community trust.
Market Analysis, August 2025
Frequently Asked Questions
What charges will Do Kwon plead guilty to?
He previously pleaded guilty to 9 felonies, including securities fraud, media network fraud, money laundering, and commodity fraud.
What significance does changing the plea have for the case?
This could significantly alter the trial process and potentially shorten legal proceedings or reduce the sentence.
How has the case impacted the LUNA Token price?
LUNA Token price continues to decline due to lost trust and impacts from legal allegations against the Terraform Labs founder.
What potential sentence might Do Kwon face?
He could face severe penalties, similar to Sam Bankman-Fried, who is currently serving a 25-year prison sentence in the US.
What have law enforcement agencies done with Do Kwon's assets?
Assets, including cryptoassets, have been seized to support investigation and case processing.
