Catenaa, Wednesday, August 13, 2025-Terraform co-founder Do Kwon pleaded guilty Tuesday to wire fraud and conspiracy to defraud in a US criminal case tied to the collapse of the algorithmic stablecoin Terra USD.
The plea follows a years-long legal battle after Terra USD’s crash wiped out tens of billions of dollars and triggered a contagion across the crypto industry.
Kwon, 33, waived his right to a trial and acknowledged he could face up to 25 years in prison, according to court reports.
US District Judge Paul Engelmayer recently noted the court had been informed that Kwon might change his plea.
The charges date to March 2023 and include conspiracy to commit fraud, commodities fraud, wire fraud, securities fraud, market manipulation, and money laundering.
Terra USD was designed to maintain price stability through algorithms tied to Luna, its governance token. Its collapse in 2022 led to widespread losses across crypto firms.
Kwon was arrested in Montenegro in March 2023 with forged travel documents and extradited to the US in December. He initially pleaded not guilty in January.
In addition to criminal charges, Kwon and Terraform faced civil fraud allegations by the U.S. Securities and Exchange Commission. In April, a jury found both liable for misleading investors and violating federal securities laws.
