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The disgraced crypto founder behind the monumental collapse of Terra, Do Kwon, Today admitted to wire fraud and conspiracy to defraud in one of the industry’s biggest scandals.
Terraform Labs co-founder Do Kwon, the once high-flying crypto mogul behind the ill-fated Terra USD stablecoin, has pleaded guilty to two counts of fraud in a New York federal court, according to Reuters.
Entering a plea marks the latest chapter in a years-long legal saga that has gripped the digital asset world since Terra’s catastrophic collapse in 2022. It could reduce his prospective sentence from 150 years to just 25 years in prison.
Do Kwon’s Journey From Crypto Fugitive to Courtroom Confession
Kwon, 33, admitted to wire fraud and conspiracy to defraud, waiving his right to trial and acknowledging a potential sentence of up to 25 years in prison.
U.S. District Court Judge Paul Engelmayer confirmed earlier this week that the court had been advised that Kwon might enter a plea change. This move ends months of speculation about whether the former CEO would fight the charges.
The criminal case stems from the implosion of Terra USD (UST), an algorithmic stablecoin designed to maintain its peg through a linked governance token, Luna.
When the system failed in May 2022, it triggered a $40+ billion wipeout and a contagion event that toppled several major crypto firms.
Prosecutors accused Kwon of misleading investors and engaging in market manipulation, with both U.S. and South Korean authorities seeking his arrest.
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From Montenegro Arrest to U.S. Guilty Plea Deal
After months on the run, Kwon was arrested in Montenegro in March 2023 for traveling on forged documents.
He was extradited, after a lengthy battle with South Korea, to the United States in December 2024 and initially pleaded not guilty in January 2025.
His guilty plea follows an April civil fraud verdict in which a jury found Kwon and Terraform Labs liable for misleading investors in violation of federal securities laws.
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