Terraform Labs co-founder Do Kwon is reportedly set to plead guilty to two US fraud charges related to the $40 billion collapse of TerraUSD (UST) stablecoin in 2022. The US Department of Justice is probing the collapse, exploring potential fraud and regulatory breaches.

*Key Details:*

- *Charges:* Do Kwon faces two US fraud charges related to the TerraUSD collapse.

- *Collapse Impact:* The TerraUSD collapse caused a loss of over $40 billion, wiping out users' life earnings and triggering a ripple effect on crypto firms and investors.

- *Investigation:* The US DOJ, FBI, and Southern District of New York have begun questioning former Terraform Labs members, with potential further charges pending.

- *Extradition:* Kwon risks extradition to the US, as South Korea, where he's wanted, has issued an arrest warrant and obtained a Red Notice from Interpol.

The case raises questions about market manipulation, stablecoin regulation, and the need for transparency and accountability in the cryptocurrency space. Terraform Labs has accused Citadel Securities, a major Wall Street player, of orchestrating the UST depeg, while Citadel denies any involvement.