The Terraform Labs co-founder was indicted in 2023 on nine charges related to the collapse of the ecosystem, resulting in an estimated $40 billion in losses.
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Terraform Labs co-founder Do Kwon has changed his plea from not guilty to guilty on two counts of wire fraud and conspiracy to defraud.
According to reporting on Tuesday from the US District Court in the Southern District of New York, Kwon his right to go to trial on two of the nine charges he has been facing from the US government and pleaded guilty.
The two charges could carry up to a 25-year prison sentence if served consecutively, but Judge Paul Engelmayer reportedly said the guidelines “would run to life imprisonment.” His sentencing hearing was scheduled for Dec. 11.
“It will be up to me to decide what a just sentence for you would be,” said Engelmayer on Tuesday, according to Inner City Press.
The Terraform co-founder was indicted in March 2023 for charges including securities fraud, market manipulation, money laundering and wire fraud related to his role at the company. He first appeared in the New York courtroom in January after his extradition from Montenegro, pleading not guilty to all charges and remaining in US custody without bail.
After the 2022 Terra crash, Kwon’s whereabouts were largely unknown until Montenegrin authorities arrested him for using falsified travel documents. He served four months in prison before US and South Korean officials both petitioned Montenegro for extradition, which was complicated by challenges in the country’s lower courts.
This is a developing story, and further information will be added as it becomes available.
