US Edition
Do Kwon pleads guilty to US fraud charges in $40 billion crypto collapse
Do Kwon admitted to defrauding investors about TerraUSD, causing $40 billion in losses, and faces up to 12 years in prison under a plea agreement, officials said.
- Do Kwon, the co-founder of Terraform Labs, admitted guilt to fraud charges in a New York court on August 13, 2025, related to the collapse of a $40 billion cryptocurrency venture.
- The May 2022 failure of Terraform Labs' TerraUSD stablecoin and Luna, which wiped out $40 billion in value, led to charges that include schemes to deceive investors and fraud conducted via electronic communications.
- Kwon was arrested in Montenegro in March 2023 while traveling on a fake passport, extradited to the US in December, and initially pleaded not guilty to a nine-count indictment.
- As part of a plea agreement, Kwon admitted to deceiving investors, consented to surrendering more than $19 million in illicit gains, and faces a maximum prison sentence of 12 years—substantially less than the approximately 25 years suggested by federal sentencing guidelines.
- US District Judge Paul Engelmayer will sentence Kwon on December 11, 2025, with prosecutors limiting the term contingent on Kwon’s compliance with the plea agreement.
27 Articles
27 Articles
South Korean crypto mogul Do Kwon pleads guilty to fraud
Cryptocurrency entrepreneur faces up to 25 years in prison over the $40bn collapse of the TerraUSD and Luna tokens.South Korean cryptocurrency mogul Do Kwon has pleaded guilty to fraud in the United States in a case tied to the $40bn collapse of the TerraUSD and Luna tokens.Kwon, the cofounder of Singapore-based Terraform Labs, entered the plea at the Southern District of New York on Tuesday, according to court filings.Kwon admitted to one count…
Cryptocurrency entrepreneur Do Kwon, the man behind the collapse of TerraUSD and Luna, has pleaded guilty to fraud charges stemming from the collapse of the cryptocurrency empire, which caused $40 billion in losses.
Do Kwon pleads guilty to US fraud charges in $40 billion crypto collapse
Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, pleaded guilty on Tuesday to two U.S. charges of conspiracy to defraud and wire fraud.
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