Archive · 13 Aug 2025
Crypto Mogul Do Kwon Pleads Guilty to Fraud
Do Kwon, known as 'the cryptocurrency king,' admitted to fraud related to the crash of TerraUSD, a cryptocurrency that promised people their money was safe.
His company, Terraform Labs, made the crypto.
Investors lost billions of dollars when it collapsed.
Kwon pleaded guilty in a New York court.
He faces a maximum of 12 years in prison.
Sentencing will occur in December.
The collapse occurred in May 2022.
Do Kwon, co-founder of Terraform Labs, pleaded guilty to fraud charges related to the TerraUSD collapse.
Kwon entered the plea in Manhattan federal court.
Investors worldwide lost money in the Singapore crypto firm Terraform Labs' $40 billion cryptocurrency crash.
The plea agreement limits the government to not seeking a prison term of more than 12 years.
Sentencing is scheduled for December 11.
- Who
- Do Kwon, co-founder of Terraform Labs.
- What
- Do Kwon pleaded guilty to two fraud charges related to the $40 billion collapse of TerraUSD.
- When
- The plea occurred on Tuesday.
- Where
- Manhattan federal court.
- Why
- To defraud purchasers of cryptocurrencies issued by his company, Terraform Labs.
Government's Perspective
Do Kwon's Plea
Fraud Charges
Government's Perspective
The government is prosecuting Kwon for fraud related to the collapse of TerraUSD.
Do Kwon's Plea
N/A
- Defendant
- Do Kwon
- Charges
- Two counts of fraud
- Company
- Terraform Labs
- Stablecoin
- TerraUSD
- Potential Sentence
- Up to 12 years
- Sentencing Date
- December 11
