Do Kwon, the South Korean crypto entrepreneur and co-founder of Terraform Labs, is scheduled to plead guilty to charges of conspiracy to defraud and wire fraud.
The plea, which will be formally taken by U.S. District Judge Paul Engelmayer, stems from the 2022 collapse of his TerraUSD and Luna tokens, an event that wiped out an estimated $40 billion from the crypto market.
The Terraform co-founder Do Kwon agreed to plead guilty to wire fraud and conspiracy to defraud, marking a major development in the criminal case following the collapse of the Terra USD stablecoin.
The 33-year-old, who was extradited to the U.S. in December 2024 after months of legal battles, waived his right to a trial and acknowledged he could face up to 25 years in prison. Kwon was initially indicted on multiple charges in March 2023 and had previously pleaded not guilty.
The guilty plea comes after a separate civil trial from the U.S. Securities and Exchange Commission (SEC), which already found both Kwon and Terraform guilty of misleading investors. The implosion of Terra USD in 2022 erased tens of billions of dollars from the crypto market.
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