Do Kwon, the founder of Terra/Luna, has pleaded guilty to conspiracy and wire fraud charges, marking a significant turn in the case. This development follows a lengthy extradition process and an initial not guilty plea. The Terraform Labs founder admitted to misleading investors about the stability of the TerraUSD (UST) stablecoin and the Luna (LUNA) token, which collapsed in 2022.
Kwon's guilty plea includes an acknowledgment of making false statements to reassure investors about the safety of their funds. As part of the plea agreement, the Department of Justice will recommend a prison sentence of up to 12 years, with the possibility of an international prison transfer after serving half of the sentence.