Terraform Labs Co-Founder Do Kwon Pleads Guilty to Fraud Charges

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, where he mocked victims on social media and flaunted his wealth. U.S. District Judge Paul Engelmayer scheduled the hearing after being advised of Kwon's intent to change his plea.

Under the plea agreement, Kwon faces up to 25 years in prison and over $19 million in financial penalties. Prosecutors may recommend a reduced sentence of 12 years if he accepts responsibility and avoids further legal issues. Kwon has also agreed to forfeit assets linked to the case.