Do Kwon Pleads Guilty to Fraud and Conspiracy Charges in TerraUSD Case
Do Kwon, co-founder of Terraform Labs, has pleaded guilty to two counts related to the 2022 TerraUSD collapse under a deal with US prosecutors. He previously entered a not guilty plea but changed his stance regarding:
- Wire fraud
- Conspiracy to defraud
The plea deal includes waiving the right to a trial on these counts, while Kwon still faces seven other charges. He may receive consecutive sentences totaling up to 25 years, with a prosecution recommendation of 12 years and $19 million in fines.
The charges originate from the May 7, 2022, crash when TerraUSD depegged from the US dollar, leading to a loss of nearly $45 billion and affecting one million investors. Kwon admitted to participating in a scheme to defraud crypto purchasers between 2018 and 2022.
Sentencing is scheduled for December 11, 2025. If he maintains his not guilty plea for the remaining charges, a trial is expected in 2026.