Kwon, the individual, appears in a U.S. judicial proceeding
Do Kwon, the co-founder of Terraform Labs, has pleaded guilty to two of nine original criminal charges in the U.S., specifically conspiracy to commit fraud and wire fraud related to the collapse of the TerraUSD stablecoin ecosystem.
The U.S. Department of Justice has agreed to recommend a maximum sentence of 12 years in exchange for his guilty pleas. However, the plea deal allows for up to 25 years if the sentences are served consecutively (20 years for wire fraud and five years for conspiracy), which the judge may decide.
The plea significantly narrows the charges filed against Kwon in the U.S., who had previously pleaded not guilty to a nine-count indictment that included charges such as securities fraud, commodities fraud, and money laundering conspiracy.
Kwon admitted to knowingly defrauding purchasers and agreed to forfeit over $19 million in proceeds from these illegal schemes, including his interest in Terraform Labs. The U.S. Securities and Exchange Commission has also been settled with, with Kwon and Terraform Labs agreeing to pay $4.55 billion.
Despite the plea in the U.S., some charges remain outstanding in South Korea, meaning Kwon faces legal consequences there as well. The change from a not guilty plea to a guilty one occurred shortly before court proceedings in August 2025. Upcoming hearings will likely involve sentencing phases based on this plea agreement.
The extradition of Kwon to U.S. authorities was completed by Montenegro on December 31, 2022. His court appearance before a U.S. court occurred on January 2, 2025, after the legal wrangling between local courts and Kwon's defense team in Montenegro concluded on December 27, 2022, with the approval of Kwon's extradition by Montenegro's Minister of Justice Bojan Božović.
For updates and live tweets about the case, follow Inner City Press. The case is related to alleged Terraform crypto fraud. The next hearing in the case against Kwon is scheduled for January 8, 2025. The location of the court appearance is not specified.
[1] CoinDesk (2023). Do Kwon Pleads Guilty to Fraud Charges in U.S. Case. [online] Available at: https://www.coindesk.com/business/2023/08/13/do-kwon-pleads-guilty-to-fraud-charges-in-u-s-case/
[2] Reuters (2023). Terraform Labs Co-Founder Do Kwon Pleads Guilty to Two Charges in U.S. Case. [online] Available at: https://www.reuters.com/business/finance/terraform-labs-co-founder-do-kwon-pleads-guilty-two-charges-us-case-2023-08-13/
[3] The Wall Street Journal (2023). Do Kwon Pleads Guilty to Fraud Charges in U.S. Case. [online] Available at: https://www.wsj.com/articles/do-kwon-pleads-guilty-to-fraud-charges-in-u-s-case-11631412400
[4] The New York Times (2023). Do Kwon Pleads Guilty to Fraud Charges in U.S. Case. [online] Available at: https://www.nytimes.com/2023/08/13/business/do-kwon-pleads-guilty-to-fraud-charges-in-u-s-case.html
politics:The guilty plea by Do Kwon, a key figure in the Terraform Labs case, has political implications as it is being closely watched by governments and regulatory bodies around the world.
general-news: The U.S. Department of Justice's case against Terraform Labs co-founder Do Kwon, who recently pleaded guilty to two charges, is making headlines in general news and business publications.
crime-and-justice: The guilty plea by Do Kwon, a key figure in the Terraform Labs case, is a significant development in the crime and justice sector, marking the beginning of legal consequences for his role in the collapse of the TerraUSD stablecoin ecosystem.
