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.
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76 Articles
South Korean entrepreneur Do Kwon, co-founder of the Terraform Labs and creator of the TerraUSD and Luna cryptomonies, complained guilty before the U.S. justice for two heads of conspiracy against fraud and electronic fraud, related to...
With his wrists and ankles handcuffed, dressed in a yellow monkey: this is how Do Kwon, the co-founder of Terraform Labs, appeared on Tuesday before a New York court. An image very different from the famous photo that portrays him taking a coffee in his office, with jeans and sneakers, and feet on the table. The 33-year-old South Korean businessman pleaded guilty before the judge of conspiracy and fraud in the process for the collapse of the Ter…
Do Kwon Pleads Guilty to Fraud in $40B TerraUSD Collapse
In a stunning turn of events that caps one of the most dramatic sagas in cryptocurrency history, Do Kwon, the South Korean entrepreneur who founded Terraform Labs, pleaded guilty on August 12, 2025, to U.S. fraud charges stemming from the catastrophic 2022 collapse of his TerraUSD and Luna tokens. The plea, entered in a Manhattan federal court, involves two counts: conspiracy to commit fraud and wire fraud. Prosecutors accused Kwon of misleading…
Terraform Labs’ Do Kwon Pleads Guilty In $40 Billion Crypto Fraud Case
NEW YORK – Do Kwon, the South Korean entrepreneur and co-founder of Terraform Labs, pleaded guilty to two counts of conspiracy and wire fraud in a Manhattan federal court on 12 August 2025. The 33-year-old, who helped launch the Singapore-based crypto firm, stood at the centre of one of the largest scandals to hit the crypto […] The post Terraform Labs’ Do Kwon Pleads Guilty in $40 Billion Crypto Fraud Case first appeared on CTN News-Chiang Rai …
Crypto Magnate Kwon Pleads Guilty to Defrauding Investors of $40 Billion
Do Hyeong Kwon, cofounder of blockchain and crypto company Terraform Labs, has pled guilty to fraud, admitting that he engaged in criminal schemes that cost investors and users billions of dollars. Kwon had marketed Terraform as a self-contained and decentralized financial ecosystem leveraging its own blockchain technology, the Justice Department said in an Aug. 12 statement. “In reality and unbeknownst to Terraform investors and users, the core…
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