Terraform Labs founder Do Kwon has pleaded guilty in court to charges of commodity fraud, securities fraud, wire fraud and money laundering conspiracy involving crypto investments through his company three years ago. The scandal cost investors $40 billion in Luna and TerraUSD (UST) cryptocurrencies.
Kwon changed his plea to guilty from his first appearance in court in January. If found guilty, he faces 130 years in prison, but prosecutors offered a sentence of no more than 12 years if he changed his plea and admitted responsibility for the crimes.
He was extradited from Montenegro to the United States on January 1 after being arrested by Montenegrin authorities in 2023. After the collapse of this investment scheme, Do Kwon fled to Singapore.
In order to bring him to justice, South Korean authorities have requested the help of Interpol. He was arrested along with another suspect after he was found using forged documents while trying to fly to Dubai.
Last year, Sam Bankman Fried, who was involved in the FTX fraud, was sentenced to 25 years in prison by a court in New York. SBF was found guilty of seven counts of money laundering and online fraud involving losses of up to $8 billion.