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Terraform Labs co-founder Do Kwon will plead guilty to wire fraud and conspiracy to defraud, closing a years-long criminal case tied to the implosion of the TerraUSD algorithmic stablecoin.
What’s the Scoop?
- Guilty Plea Incoming: Court filings indicated Kwon would change his plea and waive trial, admitting to wire fraud and conspiracy charges.
- Potential Sentence: The 33-year-old could face up to 25 years in prison.
- TerraUSD Collapse: The algorithmic stablecoin and its sister token LUNA unraveled in 2022, erasing tens of billions in value and triggering a wider crypto market crash.
- Long Legal Road: Kwon was arrested in Montenegro in March 2023 for traveling with forged documents, extradited to the U.S. in December, and initially pleaded not guilty earlier this year.
- Civil Liability: In April, a jury found Kwon and Terraform liable for civil fraud in a separate SEC case, ruling they misled investors about the stability and structure of their products.
Bankless Take:
Kwon’s impending guilty plea marks the final act in one of crypto’s most notorious sagas. The shockwaves from Terra/Luna’s collapse reverberated throughout the brutal years-long crypto bear market that followed, and the industry is ready to put this ugly chapter behind itself.
