Terraform Labs Co-Founder Do Kwon Pleads Guilty, Faces Up to 25 Years in Prison

Terraform Labs co-founder Do Kwon has reversed his previous denials and admitted in court to knowingly participating in a scheme to defraud cryptocurrency investors. The admission follows the collapse of the Terra ecosystem, which wiped out billions in investor funds.

Kwon's guilty plea marks a stark contrast to his earlier behavior. In the months following the crash, he mocked victims on Twitter, flaunted his wealth, and dismissed concerns. Now, he faces severe consequences, including up to 25 years in prison and over $19 million in financial penalties.

The plea deal stipulates that Kwon cannot appeal any sentence of 25 years or less. Prosecutors may recommend a reduced sentence of no more than 12 years if he accepts responsibility and avoids further legal trouble before sentencing. Kwon has also agreed to forfeit assets linked to the case.