News on the Terraform case: Judge Paul Engelmayer has ordered Do Kwon to appear in court today. This suggests that the co-founder of Terraform Labs might change his plea to “guilty”.
Terraform: Do Know might plead guilty to the nine charges
From what has emerged, it seems that there could be new revelations on the fraud case involving the USA, Terraform and its co-founder Do Know.
In fact, in a document filed on Monday at the United States District Court, the judge Paul Engelmayer ordered the parties to appear in court today.
What might happen is that Do Know has decided to change his statement on the different charges.
Among the various charges, there are also securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
In this regard, Engelmayer stated:
“The defendant should be ready to provide a narrative statement that includes all the elements of the offense or offenses for which they plead guilty. For the sake of clarity and efficiency, the Court encourages attorneys to assist the defendant in drafting a statement that can be read in public hearing during the guilty plea proceedings.”
Terraform and the change of declaration of Do Know
Last January 2025, Do Know had declared not guilty of the charges related to the 40 billion dollar implosion of the Terra/LUNA ecosystem in 2022.
This had led District Judge Engelmayer to state that Do Know would not be tried before January 2026.
In this time, the prosecutors should have the time to access the encrypted evidence, and the defense lawyers, on the other hand, examine the enormous amount of data of six terabytes during the investigations.
At the same time, Engelmayer had also stated that scheduling the start date of a trial more than a year after the initial conference is “unprecedented” in his career as a judge.
To mediate, the judge had asked Do Know’s lawyer if they could request an earlier date in 2025.
This conference today could be the turning point, which would see Do Know now pleading guilty to the fraud charges.
The revocation of extradition to the USA three times
At the turn of 2023 and 2024, Do Know had spent a full 22 months in Montemagno prison, managing to revoke the extradition decision to the USA for three times.
This has caused a continuous delay in the start of the process against Do Know and Terraform Labs.
Only in April 2024, the USA managed to have Do Know in their hands, awaiting trial. At that time, the Securities and Exchange Commission (SEC) of the USA had already won its civil case against Do Know.
Do Know and Terraform have been sentenced to pay 4.5 billion dollars in penalties and reliefs, while Know himself contributed 200 million dollars.