12.08.2025 20:18

Do Kwon, the 33-year-old co-founder of Terraform Labs, has admitted guilt on two federal counts related to the catastrophic collapse of TerraUSD and Luna, a cryptocurrency debacle resulting in approximately $40 billion in losses. This plea agreement, confirmed by U.S. District Judge Paul Engelmayer during a Manhattan court hearing, marks a significant development in the ongoing legal saga. The charges include conspiracy to commit fraud and wire fraud.

The plea bargain itself contains crucial stipulations. Should Kwon receive a sentence of 25 years or less, he forfeits his right to appeal the decision. However, a provision offering leniency exists: if he demonstrates remorse and refrains from further criminal activity, the prosecution will recommend a sentence not exceeding 12 years. Judge Engelmayer confirmed Kwon's understanding and acceptance of these terms during the hearing, noting the defendant's affirmative responses to questions regarding the forfeiture agreement and his willingness to concede the factual claims within the indictment. This confession avoids a lengthy trial initially slated for January 2026.

Kwon's guilty plea stands in stark contrast to his previous stance, where he vehemently denied all nine counts against him, including charges of securities fraud, commodities fraud, and money laundering conspiracy. The sentencing date remains unannounced, though the potential for a substantial prison term is clearly evident. Assistant U.S. Attorney Ravener publicly clarified the terms of the agreement, emphasizing the appeal limitation and the potential for a reduced sentence contingent upon Kwon's future behavior. This contrasts sharply with the ongoing, unresolved trial of Roman Storm, another crypto executive facing related charges where the jury has been unable to reach a verdict on certain counts. The information for this report came from internet sources.