Do Kwon, co-founder of Terraform Labs, has pleaded guilty to two federal fraud charges and awaits sentencing in December.
Charges Against Do Kwon
Do Kwon pleaded guilty to wire fraud and conspiracy to defraud in the Southern District of New York. The plea agreement includes $19 million in financial penalties. The felonies could lead to a combined sentence of up to 25 years, but the agreement states prosecutors will recommend no more than 12 years.
Background of the Case
Kwon was indicted in March 2023 on multiple charges, including securities fraud and money laundering, relating to his role at Terraform Labs. After being extradited from Montenegro, where he served time for using falsified documents, he has remained in custody without bail since arriving in the US.
Next Steps for Do Kwon
Sentencing for Kwon is scheduled for December 11. Although prosecutors have agreed not to push for more than 12 years, the final decision will rest with the judge. Other cryptocurrency figures tried in the same court have faced significant penalties.
Do Kwon's plea underscores the serious repercussions that can arise from actions in the cryptocurrency sector.
