Do Kwon Pleads Guilty to Two Federal Charges in Terraform Case

3 mins mins

Key Insights:

Do Kwon pleads guilty to wire fraud and conspiracy, facing up to 12 years in prison.
$19 million in penalties agreed under plea deal, sentencing scheduled for December 11 in New York.
Extradited from Montenegro, Kwon remains in US custody after Terra ecosystem collapse in 2022.

coincu A smug businessman in a suit juggling planets while stan c8a5f87b d425 419e 9a97 04c4058acde7 — **Do Kwon Pleads Guilty to Two Federal Charges in Terraform Case**

Terraform Labs co-founder Do Kwon has pleaded guilty to two federal charges — wire fraud and conspiracy to defraud — in the Southern District of New York. The plea represents a change from his earlier not guilty stance on all nine charges brought by US prosecutors.

According to court records, Kwon waived his right to a trial on these two counts and reached a plea agreement that includes $19 million in financial penalties. The two felonies could carry a combined sentence of up to 25 years if served consecutively, but the agreement states prosecutors will not recommend more than 12 years. Judge Paul Engelmayer, who will decide the sentence, told Kwon,

“It will be up to me to decide what a just sentence for you would be.”

Background of the Case

Kwon was indicted in March 2023 on multiple charges including securities fraud, market manipulation, money laundering, and wire fraud in connection with his role at Terraform Labs. He first appeared in a New York court in January after being extradited from Montenegro, where he had served a four-month prison sentence for using falsified travel documents.

The extradition followed months of uncertainty over Kwon’s location after the collapse of the Terra ecosystem in 2022. Both the United States and South Korea requested his extradition, which was delayed by court challenges in Montenegro. Since arriving in the US, Kwon has remained in custody without bail.

Sentencing and Legal Context

Kwon’s sentencing is scheduled for December 11. The court filing does not state why he chose to plead guilty now after maintaining his innocence for seven months. Records show prosecutors and defense attorneys had been discussing “pretrial motions and related issues,” with the case expected to go to trial in January 2026 before the plea change.

Legal observers note that other high-profile cryptocurrency figures tried in the same court have faced severe penalties. In 2024, former FTX CEO Sam Bankman-Fried received a 25-year prison sentence. Tornado Cash co-founder Roman Storm was recently convicted of operating an unlicensed money transmitting service and awaits sentencing, with the possibility of a retrial on two charges.

Next Steps

The plea agreement leaves Kwon’s final sentence in the hands of the court. While prosecutors have agreed not to push for more than 12 years, the judge could impose a different sentence. The December hearing will determine both the prison term and the timeline for paying the agreed $19 million in penalties.

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