Key Takeaways:
- Terraform Labs co-founder Do Kwon pleaded guilty to two counts of wire fraud and conspiracy to defraud, waiving his right to trial.
- The plea deal includes $19 million in penalties and a prosecutor recommendation for no more than 12 years in prison, with sentencing set for December 11.
- Kwon’s charges stem from the 2022 Terra ecosystem collapse, which erased $40 billion in value, and his arrest in Montenegro after months on the run.
Terraform Labs co-founder Do Kwon has pleaded guilty to two felony counts of wire fraud and conspiracy to defraud in the US District Court for the Southern District of New York.
He waived his right to trial on these charges – part of nine total counts – under a plea deal that includes $19 million in financial penalties.
JUST IN: Do Kwon pleads guilty to ‘conspiracy to defraud’ and ‘wire fraud’ over $40,000,000,000 LUNA collapse. pic.twitter.com/32CfH0ZLLG
— Whale Insider (@WhaleInsider) August 12, 2025
While the charges carry a potential 25-year sentence if served consecutively, prosecutors are recommending no more than 12 years.
Sentencing is set for December 11.
Kwon was indicted in March 2023 for offenses tied to the 2022 collapse of the Terra ecosystem, which wiped out an estimated $40 billion in value.
After months evading authorities, he was arrested in Montenegro for using falsified travel documents, serving four months in prison there amid competing US and South Korean extradition requests.
He was transferred to the US in January 2025 and has remained in custody without bail.
The reasons behind his plea change are unclear, though prosecutors and his defense had been discussing pretrial matters ahead of a trial scheduled for January 2026.
His case follows other major crypto convictions in the SDNY.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: