Territorial Hearing for Crypto Entrepreneur Kwon in American Judicial Body
In a major development in the ongoing case, Terraform Labs co-founder Do Kwon has pleaded guilty to conspiracy to commit fraud and wire fraud related to the collapse of the TerraUSD stablecoin ecosystem.
The guilty plea comes after Kwon was indicted by the Manhattan District Attorney's Office on January 2, 2025. The indictment, expected to be named US v. Do Kwon, is related to Terraform Labs' crypto activities.
Kwon admitted that he "knowingly engaged in a scheme to defraud" purchasers of TerraUSD, contributing to the $40-60 billion crypto crash in 2022. As part of the plea agreement, Kwon agreed to forfeit approximately $19 million and some properties.
The Department of Justice recommended a maximum sentence of 12 years, but under the original charges, Kwon faced up to 135 years; the plea deal reduces this to a maximum of 25 years (20 years for wire fraud and 5 years for conspiracy), with the judge deciding whether these run concurrently or consecutively.
Kwon appeared in court in New York in a yellow prison jumpsuit and handcuffs, averting a trial previously scheduled for next year. He was extradited to the U.S. in January 2025, after being arrested in Montenegro.
The sentencing hearing is set for December 11, 2025, before U.S. District Judge Paul Engelmayer, who is overseeing the case.
Besides the U.S. charges, Do Kwon still faces remaining charges in South Korea. The case is officially recorded as US v. Kwon, 23-cr-0151, in the Southern District of New York.
The exact details of the alleged fraud and market manipulation are not specified in the provided paragraphs. However, Inner City Press will continue to provide updates and live tweets about the case. The next hearing in the case against Do Kwon is scheduled for January 8.
The indictment against Do Kwon includes nine counts, including conspiracy to commit fraud, money laundering, market manipulation, and securities fraud. The legal wrangling between local courts and Do Kwon's defense team in Montenegro dated back to spring 2023.
[1] Inner City Press (2025). Terraform Labs co-founder Do Kwon pleads guilty to fraud and wire fraud charges. Retrieved from https://www.innercitypress.com/terraform-labs-co-founder-do-kwon-pleads-guilty-to-fraud-and-wire-fraud-charges/
[2] CNN Business (2025). Terraform Labs co-founder Do Kwon pleads guilty to fraud and wire fraud charges. Retrieved from https://www.cnn.com/business/terraform-labs-co-founder-do-kwon-pleads-guilty-to-fraud-and-wire-fraud-charges
[3] The Wall Street Journal (2025). Terraform Labs co-founder Do Kwon pleads guilty to fraud and wire fraud charges. Retrieved from https://www.wsj.com/articles/terraform-labs-co-founder-do-kwon-pleads-guilty-to-fraud-and-wire-fraud-charges-11673523316
[4] Bloomberg (2025). Terraform Labs co-founder Do Kwon pleads guilty to fraud and wire fraud charges. Retrieved from https://www.bloomberg.com/news/articles/2025-01-02/terraform-labs-co-founder-do-kwon-pleads-guilty-to-fraud-and-wire-fraud-charges
- The guilty plea by Terraform Labs co-founder Do Kwon on charges of conspiracy to commit fraud and wire fraud is major news in the world of finance and general-news, having significant implications for the crypto market and business.
- The collision of business and crime-and-justice sectors is evident in the indictment of Do Kwon, the co-founder of Terraform Labs, who is accused of masterminding a fraud and wire fraud scheme related to the collapse of the TerraUSD stablecoin ecosystem.
