LUNA & TerraUSD Crash: Do Kwon Pleads Guilty To US Fraud Charges, Faces 25 Years

Do Kwon — the South Korean crypto entrepreneur behind the $40 billion collapse of TerraUSD and LUNA — has pleaded guilty in a New York court to conspiracy to defraud and wire fraud. The Terraform Labs co-founder admitted to misleading investors during the 2021 crash of his so-called ‘stablecoin,’ concealing a trading firm’s secret intervention to restore its $1 peg. Prosecutors said the scheme fuelled massive investor losses and drove Luna’s value to $50 billion before its collapse in 2022. Kwon faces up to 25 years in prison, though a plea deal could limit his term to 12 years. He has already paid $80 million in civil fines and remains detained after extradition from Montenegro.