Do Kwon admitted guilt at Manhattan federal court for conspiracy to defraud and wire fraud in connection with the TerraUSD and LUNA collapse, agreeing to penalties exceeding $19 million and a potential 25-year prison term.
Do Kwon, co-founder of Terraform Labs, pleaded guilty in Manhattan federal court to charges of conspiracy to defraud and wire fraud related to the 2022 collapse of TerraUSD and LUNA, which resulted in approximately $40 billion in losses. Under a plea agreement, he accepted financial penalties exceeding $19 million and asset forfeitures, facing up to 25 years in prison, with prosecutors recommending a maximum of 12 years if he cooperates.