{"id":26036,"date":"2025-08-13T10:05:42","date_gmt":"2025-08-13T07:05:42","guid":{"rendered":"https:\/\/forklog.com\/en\/do-kwon-admits-to-fraud-charges\/"},"modified":"2025-08-13T10:05:42","modified_gmt":"2025-08-13T07:05:42","slug":"do-kwon-admits-to-fraud-charges","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/do-kwon-admits-to-fraud-charges\/","title":{"rendered":"Do Kwon Admits to Fraud Charges"},"content":{"rendered":"<p>Co-founder of Terraform Labs, Do Kwon, has admitted guilt to criminal charges of fraud and conspiracy, according to <a href=\"https:\/\/www.reuters.com\/legal\/government\/do-kwon-pleads-guilty-us-fraud-charges-40-billion-crypto-collapse-2025-08-12\/\">Reuters<\/a>, citing court documents.<\/p>\n<p>During the hearing, Kwon apologized for his actions.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;I made false and misleading statements. I did not disclose the trading firm&#8217;s role in restoring the peg. What I did was wrong,&#8221; he said.<\/em><\/p>\n<\/blockquote>\n<p>Kwon also waived his right to a jury trial. According to Inner City Press, he confirmed to the court that he is aware of the potential punishment of 25 years in prison.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Judge: How old are you?<br \/>Do Kwon: 33.<br \/>Judge: Are you satisfied with your attorneys&#8217; representation of you?<br \/>Do Kwon: Yes, Your Honor.<br \/>Judge: You know you have the right to go to trial, and you are waiving that right?<br \/>Do Kwon: Yes, Your Honor.<\/p>\n<p>\u2014 Inner City Press (@innercitypress) <a href=\"https:\/\/twitter.com\/innercitypress\/status\/1955278284456890761?ref_src=twsrc%5Etfw\">August 12, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Kwon has reached a plea deal with the Manhattan prosecutor&#8217;s office. The prosecution agreed to request a sentence of no more than 12 years, provided he accepts responsibility. Judge Paul Engelmayer noted that he is not bound by the plea agreement and may impose a longer sentence than suggested by the Department of Justice.<\/p>\n<p>The charges against Kwon are related to the collapse of the algorithmic stablecoin TerraUSD (UST) and the native token LUNA in 2022. The ecosystem&#8217;s collapse led to investor losses amounting to tens of billions of dollars and triggered a crisis in the crypto market.<\/p>\n<p>The court is set to deliver the sentence on December 11, 2025.<\/p>\n<p>In March 2023, Do Kwon was detained in Montenegro while attempting to leave the country with forged documents. Following lengthy procedures, the Terra founder was <a href=\"https:\/\/forklog.com\/en\/news\/montenegro-extradites-do-kwon-to-the-united-states\">extradited<\/a> to the United States, where charges were brought against him.<\/p>\n<p>Back in 2022, a court in Seoul issued an arrest warrant for Kwon and five others on charges including violations of South Korea&#8217;s capital markets law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Co-founder of Terraform Labs, Do Kwon, has admitted guilt to criminal charges of fraud and conspiracy, according to Reuters, citing court documents. During the hearing, Kwon apologized for his actions. &#8220;I made false and misleading statements. I did not disclose the trading firm&#8217;s role in restoring the peg. What I did was wrong,&#8221; he said. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":26035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1154,852,26],"class_list":["post-26036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-crimes","tag-terra","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"133","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26036"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26035"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}