Appearance of Do Kwon in American Courtroom
Terraform Labs Co-Founder Do Kwon Pleads Guilty to Crypto Fraud Charges
After a long legal battle, Terraform Labs co-founder Do Kwon has pleaded guilty to two U.S. charges of conspiracy to defraud and wire fraud. The guilty plea was made on August 12-13, 2025, and his sentencing is scheduled for December 11, 2025, before U.S. District Judge Paul Engelmayer in New York.
Kwon's guilty plea comes after an indictment by the Manhattan District Attorney's Office on January 2, 2025. The charges stem from Kwon’s misleading investors about TerraUSD’s stability and manipulating markets to uphold its $1 peg before the stablecoin collapsed in May 2022, wiping out approximately $40 billion in investor value worldwide.
Under the plea agreement, Kwon agreed to forfeit $19.3 million and some properties, pay $80 million in civil fines, and be banned from crypto transactions. Although the federal sentencing guidelines suggest up to 25 years in prison, prosecutors have agreed to advocate for no more than 12 years, provided Kwon complies with the terms of the deal and accepts responsibility for his crimes.
The charges against Kwon include conspiracy to commit fraud, money laundering, market manipulation, and securities fraud, with a total of nine counts. Authorities have also seized more than $450 million in assets for victim compensation.
Kwon faces additional charges in South Korea, but as part of the plea deal, prosecutors will not oppose his potential transfer abroad after serving half of his U.S. sentence.
Timeline of Events
- January 2, 2025: Do Kwon appeared before a U.S. court and was indicted by the Manhattan District Attorney's Office.
- January 8, 2025: The next hearing for Do Kwon's case is scheduled.
- December 27, 2023: Montenegro's Minister of Justice Bojan Božović approved Do Kwon’s extradition to the United States.
- December 31, 2023: The extradition process for Do Kwon to U.S. authorities was completed by Montenegro.
- January 2, 2025: The court proceeding was a presentment for US v. Do Kwon.
- August 12-13, 2025: Do Kwon pleaded guilty to two U.S. charges of conspiracy to defraud and wire fraud.
- December 11, 2025: Sentencing date for Do Kwon.
Updates on the Case
Inner City Press will provide updates on the case through their reports and live tweets. For more information, follow their coverage.
In light of the guilty plea made by Terraform Labs co-founder Do Kwon, there is increased interest in policy-and-legislation surrounding the regulation of cryptocurrency markets. The incident raises questions about the oversight of crypto transactions and the accountability of those involved in the industry, highlighting issues that are currently topics of debate in politics.
Meanwhile, general-news outlets are extensively covering the case, delving into the details of Kwon's indictment and the charges he faces, including conspiracy to commit fraud, money laundering, market manipulation, and securities fraud. Additionally, the media is also reporting on the crime-and-justice aspects of the saga, focusing on the repercussions of Kwon's actions, such as the financial losses incurred by investors and the seizure of assets by authorities.
