Do Kwon, co-founder of Terraform Labs, has pleaded guilty to conspiracy and wire fraud in connection with the collapse of his cryptocurrency firm, which wiped out $40 billion in funds. The plea comes three years after the incident, as part of a deal reached with prosecutors that reduced his charges.
Kwon admitted to knowingly defrauding investors and working with another company to artificially inflate Terra’s stablecoin peg. His sentencing is set for December 11th, with a maximum sentence of five years for conspiracy and 20 years for wire fraud.
The collapse of Terraform Labs’ Terra stablecoin and sister token Luna in 2022 led to significant investor losses. Kwon was arrested in Montenegro in 2023 before being extradited to the US over a year later.
Source: https://www.theverge.com/news/758160/do-kwon-terraform-labs-guilty-plea