12.08.2025 17:25
Do Kwon, the co-founder of Terraform Labs, admitted guilt on Tuesday in a Manhattan federal court. His plea covered charges of conspiracy to defraud and wire fraud, directly linked to the devastating 2022 collapse of the algorithmic stablecoin TerraUSD and its sister token, Luna. This catastrophic event wiped out approximately $40 billion from the cryptocurrency market capitalization.
A negotiated plea agreement, presented before Judge Paul Engelmayer, stipulates a maximum prison sentence of 12 years. This represents a significant reduction from the potential 25-year guideline sentence and includes a proposed $19 million fine, contingent on Kwon's future conduct. The judge approved the plea, with a sentencing date to be announced at a later time.
The 33-year-old Kwon, previously extradited from Montenegro on December 31, 2024 after a period of evasion, had initially rejected a nine-count indictment. These charges encompassed allegations of securities fraud, commodities fraud, and money laundering, in addition to the charges he ultimately pleaded guilty to.
This criminal conviction follows a separate, substantial $4.55 billion civil settlement Kwon reached with the U.S. Securities and Exchange Commission last year. This settlement also permanently barred him from any future involvement in the cryptocurrency industry, effectively ending his career in the sector. The information presented here is sourced from various online sources, compiled and analyzed.
