Do Kwon admitted guilt in fraud.

do_kwon-min# 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.

"I made false and misleading statements. I did not disclose the role of the trading firm in restoring the peg. What I did was wrong," he said.

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.

Judge: How old are you? Do Kwon: 33. Judge: Are you satisfied with your attorneys' representation of you? Do Kwon: Yes, Your Honor. Judge: You know you have the right to go to trial, and you are waiving that right? Do Kwon: Yes, Your Honor.

— Inner City Press (@innercitypress) August 12, 2025

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.

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