13.08.2025 02:25

Do Kwon, co-founder of Terraform Labs, admitted guilt in a New York courtroom today, concluding a high-profile fraud case stemming from the catastrophic collapse of the TerraUSD stablecoin in 2022. His plea, accepted by prosecutors, involved charges of conspiracy and wire fraud related to the $40 billion cryptocurrency market crash.


Clad in a yellow prison uniform, Kwon formally apologized for his actions, acknowledging his role in defrauding cryptocurrency buyers. The plea bargain included a significant $19.3 million fine and the forfeiture of certain assets. His statement clearly demonstrated a willingness to accept responsibility for the devastating consequences of his actions.


The agreement with prosecutors stipulates a maximum prison sentence of 12 years, a considerable reduction from the potential 25 years that the charges normally carry. This lenient sentence is contingent upon Kwon's future conduct; any further criminal activity could lead to harsher penalties.


Kwon’s journey to this plea deal was complex and lengthy. Indicted in both the United States and South Korea, he spent nearly two years evading capture before his arrest in Montenegro, using a falsified passport. Extradited to the US in January of this year, he avoided a trial originally slated for next year, expediting the resolution of this significant case. This swift conclusion comes as a result of the plea bargain. The information presented here is not financial advice.