South Korean Crypto Mogul Do Kwon Pleads Guilty to Fraud
$40 Billion Crypto Collapse Sparks Major Legal Case
South Korean – (Special-Correspondent / Web Desk) – South Korean cryptocurrency mogul Do Kwon has admitted guilt to fraud charges in the United States over the massive $40 billion collapse of the TerraUSD and Luna tokens. The high-profile case marks one of the biggest scandals in the history of digital currencies.
Kwon, cofounder of the Singapore-based company Terraform Labs, entered his guilty plea at the US District Court for the Southern District of New York on Tuesday, according to court documents.
He confessed to one count of conspiring to commit commodities fraud, securities fraud, and wire fraud, along with one count of wire fraud. Prosecutors said Kwon also agreed to surrender more than $19 million in illegal earnings as part of the deal.
Earlier in January, Kwon had pleaded not guilty to nine charges, including securities fraud, wire fraud, and money laundering conspiracy. However, his new plea reverses that position.
US Attorney Jay Clayton stated that Kwon used the excitement and trust surrounding cryptocurrency to run one of the largest fraud schemes in history. He said Kwon attracted tens of billions of dollars to Terraform’s ecosystem by promising a self-stabilizing stablecoin, but when the market realized the system was unstable, it collapsed, leaving investors worldwide with billions in losses.
Kwon is scheduled to be sentenced on December 11 and could face up to 25 years in prison if given the maximum penalty.
The cryptocurrency entrepreneur was extradited to the United States in December 2024 after being arrested in Montenegro. His arrest came following several months on the run from law enforcement authorities around the globe.
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