Terraform Labs co-founder Do Kwon pleaded guilty in a US fraud case related to the $40 billion TerraUSD stablecoin crash in 2022.
At a hearing in New York today, Kwon pleaded guilty to conspiracy and wire fraud charges in a deal with prosecutors. Appearing in court in his yellow prison uniform, he also agreed to pay a $19.3 million fine and forfeit some of his assets.
“I conspired with others to defraud buyers of cryptocurrencies issued by Terraform Labs, and I did so knowingly. This was wrong, and I apologize for my actions. I accept full responsibility,” he said.
Kwon, who was also indicted in the US and South Korea, played a key role in the crisis that began with the collapse of TerraUSD, leading to major fluctuations in the crypto market in the spring of 2022 and the bankruptcy of the FTX exchange.
Under the agreement reached with prosecutors, Kwon faces up to 12 years in prison if he doesn’t commit any new crimes. Under normal circumstances, the charges carry a total sentence of up to 25 years.
Kwon was indicted in the US in 2023, captured in Montenegro with a fake passport after nearly two years on the run, and extradited to the US in January after being sentenced. This development allowed the case to be concluded early, foregoing a trial scheduled for next year.
*This is not investment advice.
