Do Kwon pleads guilty in $40B Terra/Luna fraud – Details

Key Points

1. Do Kwon agreed to plead guilty to two felony charges of wire fraud, avoiding a trial and admitting to misleading investors about TerraUSD.

2. The plea deal was filed on August 12 in the Southern District of New York, reversing his earlier not-guilty plea.

3. Prosecutors accused Kwon of contributing to the collapse of TerraUSD and LUNC in May 2022, which wiped out an estimated $40 billion in investor wealth.

4. Kwon may face a reduced prison sentence of 12 years, as prosecutors consider recommending a lighter term due to his guilty plea.

5. In 2024, Kwon also settled with the U.S. SEC as part of a $4.55 billion deal, further resolving his legal troubles.