US EditionDo 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.
60 Articles
60 Articles
The South Korean cryptocurrency tycoon Do Kwon, accused of being behind a multimillion dollar bankruptcy three years ago, pleaded guilty to fraud before a New York judge, according to court documents published on Tuesday. Kwon, founder of Terraform Lab and promoter of two key cryptocurrencies in bankruptcy, faced nine charges in a formal indictment filed by the prosecution in January 2025, of which he initially pleaded not guilty. But he modifie…
Do Kwon Pleads Guilty to Two Counts of Fraud
Terraform Labs co-founder Do Kwon has pleaded guilty to two counts of fraud — one for conspiracy to commit commodities, securities, and wire fraud, and another for wire fraud related to schemes at Terraform. As part of the plea deal, Kwon has agreed to forfeit over $19 million in earnings from his crypto activities and his interest in Terraform Labs and associated tokens. This story is an excerpt from the Unchained Daily newsletter. To get the…
Terraform Labs founder Do Kwon pleads guilty to fraud over $40 billion crypto collapse
Terraform co-founder Do Kwon has pleaded guilty to two US chargers of fraud after his actions wiped out $40 billion worth of crypto investments, The Guardian reported. Kwon's story is a wild one involving an immense crypto crash, an Interpol manhunt and Kwon's eventual extradition from Montenegro to the United States. Kwon, along with Sam Bankman-Fried and others, was a key player in 2022's crypto collapse. His company Terraform created a "stab…
Dnevni list Danas
nin.rsIn 2023, Do Kwon was arrested in Montenegro and then extradited to America, although South Korea was also looking for him. He faces a long prison sentence and confiscation of his property.
South Korean crypto fugitive Do Kwon pleads guilty in New York to fraud in US$40b wipeout
NEW YORK, Aug 13 — South Korean cryptocurrency specialist Do Kwon pleaded guilty to fraud charges in front of a New York judge on Tuesday following his firm’s multi-billion-dollar bankruptcy, court filings showed.Do Kwon, who founded Terraform and nurtured two cryptocurrencies central to the bankruptcy, had faced nine counts in a superseding indictment filed by prosecutors in January 2025 to which he initially pleaded not guilty.The fallen mogul…
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