Terraform Labs co-founder Do Kwon is expected to plead guilty on Tuesday to U.S. fraud charges stemming from the 2022 collapse of the TerraUSD stablecoin and its sister token Luna, according to a scheduling order filed in Manhattan federal court. U.S. District Judge Paul Engelmayer set a change-of-plea hearing for 10:30 a.m. Eastern Time on Aug. 12 after being notified that Kwon intends to reverse his earlier not-guilty plea. Prosecutors accuse the South Korean entrepreneur of orchestrating a scheme that wiped out about $40 billion in market value when the tokens lost their peg in May 2022. A nine-count indictment charges him with securities fraud, wire fraud, commodities fraud and money-laundering conspiracy, crimes that collectively carry a potential sentence of roughly 130 years. Kwon was extradited to the United States from Montenegro on Dec. 31 2024 after serving jail time for document forgery. He had been scheduled to face trial on Jan. 26 2026, but the anticipated guilty plea would avert that proceeding and could significantly shorten any eventual prison term, depending on the terms of a yet-to-be-disclosed plea agreement. The case is one of the largest cryptocurrency prosecutions to date and is being heard in the U.S. District Court for the Southern District of New York.