The post State of Crypto: Do Kwon Pleads Guilty appeared on BitcoinEthereumNews.com.

Terra/Luna creator Do Kwon pleaded guilty to one charge of conspiring to commit fraud and one charge of wire fraud on Tuesday, following an earlier not guilty plea and a very lengthy extradition process. You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions. The narrative Terraform Labs founder Do Kwon, who created the TerraUSD stablecoin and its counterpart Luna (LUNA) token, pleaded guilty to conspiracy to commit securities, commodities or wire fraud and wire fraud Why it matters Terra and its related ecosystem blew up in spectacular fashion in 2022, with Luna falling from an all-time high price of nearly $120 to less than 10 cents over the course of five weeks. UST broke its peg, and the event was the first domino in the various other crypto company bankruptcies over the course of 2022. Breaking it down In 2021, Do Kwon repeatedly assured investors that Terra and Luna were safe investments, through tweets and appearances on programs like CoinDesk TV. On Tuesday, he apologized as part of his guilty plea. “Between 2018 and 2022 in the Southern District of New York and elsewhere, I knowingly agreed with others to engage in a scheme to defraud, and did in fact defraud, purchasers of the cryptocurrencies issued by my company, Terraform Labs,” he said, going on to say he made “false and misleading statements” about why UST regained its peg. As part of his plea deal, the Department of Justice agreed to recommend a prison sentence of no more than 12 years, and Kwon can apply for an international prison transfer once he’s served 50% of his sentence. One of Kwon’s attorneys noted that there are still outstanding charges against him in South Korea, the country…

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Filed under: News - @ August 17, 2025 4:27 pm