The post Do Kwon Pleads Guilty in U.S. Fraud Case Over $40 Billion TerraUSD Collapse appeared on BitcoinEthereumNews.com.

Do Kwon pleads guilty to U.S. fraud charges over TerraUSD collapse, facing up to 25 years in prison. Do Kwon, a South Korean cryptocurrency entrepreneur, pleaded guilty on Tuesday, August 12, 2025, to two U.S. charges. According to Reuters, these charges were conspiracy to defraud and wire fraud. Kwon, aged 33, co-founded Terraform Labs in Singapore. He has developed TerraUSD and Luna, two digital currencies that lost with 40 billion dollars in 2022. The plea occurred in a New York court in the presence of U.S. District Judge Paul Engelmayer. Terra Founder Do Kwon Faces Up to 25 Years in Prison in TerraUSD Collapse Case First, Kwon had earlier pleaded not guilty in January to a nine-count indictment. These charges were security fraud, wire fraud, commodities fraud, and conspiracy to launder money. In 2021, prosecutors said he had falsely told investors about TerraUSD, a stablecoin that was supposed to be worth a dollar. Kwon lied rather than telling the truth when he said that a computer algorithm, the so-called “Terra Protocol,” had stabilized TerraUSD value when it fell below the level of 1 dollar in May 2021. As a matter of fact, he had a trading company purchase millions of dollars of the token secretly in order to boost its price. Consequently, investors thought that TerraUSD was stable. This inflated the price of an associated cryptocurrency, Luna, to 50 billion in the spring of 2022. When TerraUSD collapsed, however, this led to enormous losses. The crypto market shook due to many investors losing their savings. Kwon accepted his wrongdoing in court. He stated that he stated false and misleading reasons as to why it had recovered its peg by not revealing the role played by a trading firm in reviving that peg. My action was bad. Related Reading: Do Kwon,…

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Filed under: News - @ August 13, 2025 3:28 am