Do Kwon, the 33-year-old South Korean entrepreneur and co-founder of Singapore-based Terraform Labs, pleaded guilty on Tuesday to two charges of conspiracy to defraud and wire fraud in Manhattan federal court before U.S. District Judge Paul Engelmayer.

Fox 59

Guardian

Do Kwon, the 33-year-old South Korean entrepreneur and co-founder of Singapore-based Terraform Labs, pleaded guilty on Tuesday to two charges of conspiracy to defraud and wire fraud in Manhattan federal court before U.S. District Judge Paul Engelmayer.

Kwon had initially pleaded not guilty in January to a nine-count indictment that included charges of securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. However, he reversed his plea under an agreement with the Manhattan U.S. Attorney's office.

New York Post

Korea Herald

Kwon had initially pleaded not guilty in January to a nine-count indictment that included charges of securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. However, he reversed his plea under an agreement with the Manhattan U.S. Attorney's office.

Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon falsely told investors that a computer algorithm called the Terra Protocol had restored the coin's value, when in fact he had arranged for a high-frequency trading firm to secretly purchase millions of dollars' worth of the token.

The Korea Times

BBC News

Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon falsely told investors that a computer algorithm called the Terra Protocol had restored the coin's value, when in fact he had arranged for a high-frequency trading firm to secretly purchase millions of dollars' worth of the token.

The collapse of TerraUSD and Luna cryptocurrencies in May 2022 resulted in approximately $40 billion in losses for investors worldwide, after the combined market value of the tokens had reached $50 billion by the spring of that year.

United States Department of Justice

Al Jazeera

The collapse of TerraUSD and Luna cryptocurrencies in May 2022 resulted in approximately $40 billion in losses for investors worldwide, after the combined market value of the tokens had reached $50 billion by the spring of that year.

Kwon was arrested in Montenegro on March 23, 2023, while traveling on a false passport and was extradited to the U.S. on Dec. 31, 2024, after U.S. authorities submitted a formal extradition request on March 25, 2023.

www.ft.com

Kwon was arrested in Montenegro on March 23, 2023, while traveling on a false passport and was extradited to the U.S. on Dec. 31, 2024, after U.S. authorities submitted a formal extradition request on March 25, 2023.

As part of his plea agreement, Kwon agreed to forfeit more than $19 million in proceeds from his schemes and faces a maximum sentence of 25 years in prison; however, prosecutors decided to advocate for a sentence of no more than 12 years when he is sentenced on Dec. 11.

As part of his plea agreement, Kwon agreed to forfeit more than $19 million in proceeds from his schemes and faces a maximum sentence of 25 years in prison; however, prosecutors decided to advocate for a sentence of no more than 12 years when he is sentenced on Dec. 11.

Kwon had initially pleaded not guilty in January to a nine-count indictment that included securities fraud, wire fraud, commodities fraud and money laundering conspiracy charges, but reversed his plea under an agreement with the Manhattan U.S. Attorney's office.</span

Korea Herald #

New York Post #2838

Kwon had initially pleaded not guilty in January to a nine-count indictment that included securities fraud, wire fraud, commodities fraud and money laundering conspiracy charges, but reversed his plea under an agreement with the Manhattan U.S. Attorney's office.

Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon falsely told investors that a computer algorithm called Terra Protocol had restored the coin's value, when he actually arranged for a high-frequency trading firm to secretly purchase millions of dollars of the token.</span

The Korea Times #

BBC News #

Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon falsely told investors that a computer algorithm called Terra Protocol had restored the coin's value, when he actually arranged for a high-frequency trading firm to secretly purchase millions of dollars of the token.

The collapse of TerraUSD and Luna cryptocurrencies in May 2022 resulted in approximately $40 billion in losses for investors worldwide, after the combined market value of the tokens had reached $50 billion by spring 2022.</span

Al Jazeera #1510

The collapse of TerraUSD and Luna cryptocurrencies in May 2022 resulted in approximately $40 billion in losses for investors worldwide, after the combined market value of the tokens had reached $50 billion by spring 2022.

Kwon was arrested in Montenegro on March 23, 2023, while traveling on a false passport and was extradited to the United States on December 31, 2024, after U.S. authorities submitted a formal extradition request on March 25, 2023.</span

Kwon was arrested in Montenegro on March 23, 2023, while traveling on a false passport and was extradited to the United States on December 31, 2024, after U.S. authorities submitted a formal extradition request on March 25, 2023.

As part of his plea agreement, Kwon agreed to forfeit more than $19 million in proceeds from his schemes and faces a maximum sentence of 25 years in prison, though prosecutors agreed to advocate for no more than 12 years when he is sentenced on December 11.</span

Fox 59 #

As part of his plea agreement, Kwon agreed to forfeit more than $19 million in proceeds from his schemes and faces a maximum sentence of 25 years in prison, though prosecutors agreed to advocate for no more than 12 years when he is sentenced on December 11.

Kwon's case shows how regulatory overreach is criminalizing innovation in the crypto space. The government is using hindsight to prosecute what was essentially a failed business model, not intentional fraud. The plea deal's transfer provision recognizes that this prosecution may have been excessive, allowing him to serve time in South Korea where the actual harm occurred.

Kwon's case shows how regulatory overreach is criminalizing innovation in the crypto space. The government is using hindsight to prosecute what was essentially a failed business model, not intentional fraud. The plea deal's transfer provision recognizes that this prosecution may have been excessive, allowing him to serve time in South Korea where the actual harm occurred.

Crypto founder Do Kwon pleads guilty to US fraud charges

Do Kwon Pleads Guilty to $40B Crypto Fraud Charges

Fraud and swindling

Money

South Korea

The crypto market needed accountability after years of unchecked fraud that devastated ordinary investors. Kwon's guilty plea represents justice for the thousands who lost their life savings believing his lies about algorithmic stability. His 12-year sentence recommendation sends a clear message that crypto executives can't hide behind technology buzzwords while running Ponzi schemes.

The crypto market needed accountability after years of unchecked fraud that devastated ordinary investors. Kwon's guilty plea represents justice for the thousands who lost their life savings believing his lies about algorithmic stability. His 12-year sentence recommendation sends a clear message that crypto executives can't hide behind technology buzzwords while running Ponzi schemes.

Crypto mogul Do Kwon pleads guilty to fraud for $40bn market collapse

Kwon's case shows how regulatory overreach is criminalizing innovation in the crypto space. The government is using hindsight to prosecute what was essentially a failed business model, not intentional fraud. The plea deal's transfer provision acknowledges that this prosecution may have been excessive, allowing him to serve his sentence in South Korea, where the actual harm occurred.

Kwon's case shows how regulatory overreach is criminalizing innovation in the crypto space. The government is using hindsight to prosecute what was essentially a failed business model, not intentional fraud. The plea deal's transfer provision acknowledges that this prosecution may have been excessive, allowing him to serve his sentence in South Korea, where the actual harm occurred.

There's a 40% chance that Google, Meta, Amazon, Tesla, or X will accept crypto as a payment on Dec. 31, 2025, according to the Metaculus prediction community.

There's a 40% chance that Google, Meta, Amazon, Tesla, or X will accept crypto as a payment on Dec. 31, 2025, according to the Metaculus prediction community.

Do Kwon Pleads Guilty to $40B Crypto Fraud Charges

Do Kwon Pleads Guilty to $40B Crypto Fraud Charges

The Spin

Metaculus Prediction

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Do Kwon Pleads Guilty to $40B Crypto Fraud Charges

Do Kwon Pleads Guilty to $40B Crypto Fraud Charges

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Metaculus Prediction

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