Do Kwon Pleads Guilty to Fraud Charges Linked to TerraUSD Collapse
Do Kwon, founder of Terraform Labs, pleaded guilty to conspiracy to commit fraud and wire fraud. This follows the collapse of the Terra/Luna ecosystem three years ago.
- Kwon admitted to defrauding purchasers of the TerraUSD (UST) stablecoin.
- He faces a maximum forfeiture of $19 million and agreed to forfeit property and pay restitution.
- The plea agreement suggests a maximum sentence of 12 years, with potential for international prisoner transfer after serving half.
- There are pending charges against Kwon in South Korea.
- He acknowledged making false statements about UST's stability from 2018 to 2022.