3 days ago
Do Kwon, Korean behind Terra-Luna crash, pleads guilty, faces up to 12 year sentence in US
Terraform Labs founder's plea deal includes $19 million forfeiture
Terraform Labs founder Do Kwon, who is behind the $40 billion collapse of two cryptocurrencies in 2022, has pleaded guilty to two charges of conspiracy to defraud and wire fraud.
Appearing in a Manhattan courtroom on Tuesday, the boss of Singapore-based tech firm, which operated TerraUSD and Luna, said, 'What I did was wrong and I want to apologize for my conduct. I take full responsibility.'
Kwon pleaded guilty to one count of conspiring to commit commodities fraud, securities fraud and wire fraud, and one count of committing wire fraud. Together, the charges carry a maximum sentence of 25 years in prison. Prosecutors said they would seek a sentence of no more than 12 years.
As part of the plea, Kwon agreed to forfeit more than $19 million in proceeds from his schemes, including his interest in Terraform and its cryptocurrencies.
If Kwon serves half of his final sentence and complies with the plea terms, the Justice Department will not oppose his application for the International Prisoner Transfer Program, according to local news outlets. That would allow him to serve the remainder of his sentence in South Korea.
Separate from the US criminal case, Kwon has been booked in South Korea on charges including violations of the Capital Markets Act.
'Kwon attracted tens of billions in funds to Terraform's ecosystem by promising a self-stabilizing stablecoin,' US Attorney Jay Clayton said. 'By the time the markets discovered the ecosystem was unstable, it was too late. The system collapsed, and investors around the world suffered billions in losses.'
On March 23, 2023, Kwon was arrested in Europe while traveling on a false passport. US authorities submitted a formal request for his arrest and extradition on March 25. 2023. He was extradited from Montenegro to the US on Dec. 31, 2024.
The US Attorney's Office for the Southern District of New York indicted him on eight counts, including securities fraud, wire fraud, commodities fraud and conspiracy to manipulate market prices.
Kwon's sentencing hearing is scheduled for Dec. 11. The final sentence will be determined at the judge's discretion, and it could be higher than the prosecution's recommended 12 years.
