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- Qadir AK
Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Aug 13, 2025 06:13 UTC
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Terraform Labs Co-Founder Do Kwon Pleads Guilty, Faces Up to 25 Years in Prison
Do Kwon pleads guilty to defrauding investors in the $40B Terra collapse, reversing months of public denials.
Plea deal includes $19M in penalties, up to 25 years in prison, with prosecutors recommending no more than 12 years.
Terraform Labs co-founder Do Kwon has admitted in court that he knowingly participated in a scheme to defraud cryptocurrency investors, reversing his previous denials after the collapse of the Terra ecosystem.
From Mocking Victims to Admitting Guilt
For months after the crash that wiped out billions, Kwon used Twitter to mock victims, post jokes, and flaunt his wealth.
But in court, his tone changed. “I knowingly agreed with others in a scheme to defraud and did defraud investors,” he told the judge.
The guilty plea came after U.S. District Judge Paul Engelmayer, in a brief scheduling order, said he had been advised that Kwon might change his plea and set a hearing for Tuesday at 10:30 a.m. EDT (1430 GMT) in Manhattan federal court.
Plea Deal and Sentencing
Kwon confirmed that he signed a plea agreement, which includes more than $19 million in financial penalties and a stipulated sentencing guideline of 25 years. Under the deal, he cannot appeal any sentence of 25 years or less. If he accepts responsibility and avoids new crimes before sentencing, prosecutors will recommend no more than 12 years in prison.
He also agreed not to contest the indictment’s factual allegations and to forfeit assets linked to the case. The fraud, he admitted, took place between 2018 and 2022 in the Southern District of New York, targeting buyers of Terraform Labs’ cryptocurrencies, including some in New York.
When asked by the judge if he knew his actions were illegal, Kwon said that while he didn’t fully understand international statutes, he knew it was wrong. Sentencing is scheduled for December 11 at 11 a.m.
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FAQs
He admitted to defrauding cryptocurrency investors in connection with the Terra ecosystem collapse.
He faces over $19M in fines and up to 25 years in prison under his plea agreement.
Prosecutors may recommend no more than 12 years if he accepts responsibility and avoids new crimes.
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