Do Kwon Pleads Guilty to Fraud, Accepts 12-Year Sentence & $19M Fine

Terraform Labs co-founder Do Kwon has admitted guilt to two felony counts of wire fraud and conspiracy to defraud, concluding a protracted legal battle with U.S. authorities. The plea deal, finalized in the Southern District of New York, represents a stark departure from Kwon's initial not-guilty plea.

Prosecutors have agreed to recommend a 12-year prison term—significantly below the maximum 25-year sentence—contingent on Kwon avoiding further legal infractions prior to sentencing. Additionally, he faces financial penalties exceeding $19 million. Sentencing is scheduled for December 11.

Judge Paul Engelmayer emphasized that the final sentencing decision remains at his discretion. Kwon, 33, acknowledged understanding the charges and penalties during court proceedings, waiving his right to a trial. The case centers on allegations of investor deception related to TerraUSD's stability claims between 2018 and 2022.