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Do Kwon admitted guilt in fraud.
Co-founder of Terraform Labs Do Kwon has pleaded guilty to criminal charges of fraud and conspiracy. This was reported by Reuters citing court documents.
During the meeting, Kwon apologized for his actions.
Kwon also waived his right to a jury trial. According to Inner City Press, he confirmed to the court that he is aware of the possible punishment of 25 years in prison.
Kwon struck a deal with the Manhattan District Attorney's Office. The prosecution agreed to request a sentence of no more than 12 years on the condition that he accepts responsibility. Judge Paul Engelmayer noted that he is not bound by the plea agreement, so he may impose a longer sentence on Kwon than what the Justice Department proposed.
The accusations against Kwon are related to the collapse of the algorithmic stablecoin TerraUSD (UST) and the native token LUNA in 2022. The collapse of the ecosystem led to losses for investors amounting to tens of billions of dollars and triggered a crisis in the cryptocurrency market.
The court is to deliver a verdict on December 11, 2025.
In March 2023, Do Kwon was arrested in Montenegro while attempting to leave the country with fake documents. After lengthy procedures, the founder of Terra was extradited to the USA, where charges were brought against him.
Recall that in 2022, a court in Seoul issued an arrest warrant for Kwon and five others on charges including violations of South Korea's capital markets legislation.